Convert currency with Norbert's Gambit

Overview

Norbert’s Gambit is an alternative method for converting currency between Canadian dollars (CAD) and US dollars (USD) by journaling an ETF instead of using a standard conversion. It involves purchasing a specific exchange-traded fund (ETF) in one currency and using our journaling feature to switch it to its version in the other currency before selling it.

While standard currency conversion is instant and convenient, it includes a percentage-based fee.

By using the journaling feature, you can change the currency listing of the Global X US Dollar Currency ETF (DLR and DLR.U), rather than using standard currency conversion. Only DLR and DLR.U can be journaled, and you can journal in both directions: DLR to DLR.U to get USD, or DLR.U to DLR to get CAD.

• Processing time: 2 business days after you submit, at 9:30 a.m. Eastern Time (ET).
• Fee: $9.95 CAD plus tax per journal request.
• Availability: This feature is available only on the web. It’s not available in the Wealthsimple app.

Before you start

To use Norbert’s Gambit, you need:

• USD accounts turned on. This is the USD accounts subscription, not a USD savings account. It costs $10 CAD a month plus applicable tax after a 30-day free trial, and it’s free for Premium and Generation clients. Without USD accounts, the Journal option doesn’t appear.
• A self-directed account. Any self-directed account can journal, including margin accounts and accounts with Margin Boost.
• Enough CAD buying power in the same account to cover the $9.95 CAD fee plus tax.
• Journaling is only available on the web.

Only the account owner can submit a journal request.

How to perform Norbert’s Gambit

The following steps explain how to convert CAD to USD on the web. To convert USD to CAD, follow the same steps starting with DLR.U.

1. Log in to your Wealthsimple profile on the web
2. Search for the Global X US Dollar Currency ETF (DLR) in the Search tab
3. Buy DLR in CAD if you don’t already own it. You don’t need to wait for your purchase to settle.
4. Go to the security details page for DLR
5. Select Journal in the holdings table beneath the stock graph
6. Enter the number of DLR shares you want to convert to DLR.U (the US dollar version)
7. Select Next
8. Confirm the details of your journaling request
9. Select Submit

Your journal is processed 2 business days after you submit it, at 9:30 a.m. ET. We’ll email you when your DLR.U shares are available to trade. Then sell your DLR.U shares to receive USD.

Check your journal

To check your journal’s status:

1. Log in to your Wealthsimple profile on the web
2. Go to your Activity
3. Select the journal to see its status

You can submit a journal at any time because there’s no daily cut-off. A journal submitted on the weekend is processed on Tuesday, and statutory holidays push the processing date back.

• Pending: Your journal is waiting for its processing date. A pending journal isn’t the same as a pending buy or sell order, which is waiting to fill.
• Complete: We’ll email you that share journaling is complete and your new shares are available to trade.

Cancel or change a journal

You can cancel a journal while it’s Pending, up until 9:30 a.m. ET on its processing date. You can only cancel on the web, not in the Wealthsimple app.

1. Log in to your Wealthsimple profile on the web
2. Open the journal in your Activity
3. Select Cancel request

You won’t be charged the fee for a cancelled journal. If you can’t cancel it on the web, contact our support team and we’ll try to cancel it for you. We can’t guarantee it will be cancelled before it’s processed.

You can’t change a journal after you submit it. To change the number of shares or another detail, cancel the journal while it’s still Pending and submit a new one. The new journal is processed 2 business days after you submit it, at 9:30 a.m. ET.

Fees

Each journal request costs $9.95 CAD plus tax.

• The fee is always charged in CAD from the CAD buying power in the same account as the journal.
• The fee plus tax is held when you submit and only charged once your journal is processed successfully. If your journal is cancelled or doesn’t go through, you’re not charged. Keep enough CAD in the account until your journal is processed, because the journal won’t go through if your balance drops below the fee.
• The fee can’t be waived, and it applies to every journal request.
• The fee doesn’t affect your TFSA or RRSP contribution room.

Tax is based on the province or territory on your Wealthsimple profile. The table below shows the total for each one, using Goods and Services Tax (GST), Harmonized Sales Tax (HST), and Quebec Sales Tax (QST).

What you’ll get

Journaling swaps your shares 1:1. You get the same number of DLR.U shares as the DLR shares you journal, or the reverse. The confirmation screen shows an estimated value. Your final amount can differ slightly because of the prices you buy and sell at, including the bid-ask spread (the difference between the buy and sell price of the ETF). Our foreign exchange spread doesn’t apply to journaling.

When your exchange rate is set depends on which direction you’re converting:

• CAD to USD: DLR’s price moves with the exchange rate, so your rate mostly depends on when you buy DLR. After that, exchange rate changes usually have little effect on your amount.
• USD to CAD: DLR.U’s price stays fairly steady in US dollars, so your rate mostly depends on when you sell DLR at the end. Exchange rate changes can affect your amount until then.

Fix journal errors

“Not enough funds”

You’ll see this message after you enter the number of shares if there isn’t enough CAD buying power in the same account to cover the fee plus tax. The message doesn’t show how much you need, so check the fee table above. Add CAD to the same account, then try again.

If you have enough CAD and still see this message in a margin account or an account with Margin Boost, the cause may be a margin issue instead. Contact our support team for help.

“Something went wrong”

If you see this message when you submit, don’t select Try again. Start a new journal from the DLR or DLR.U page instead, and make sure the number of shares you enter is valid.

Rejected journal

A rejected journal shows as Rejected in your Activity. The reason isn’t shown. You aren’t charged for a rejected journal. These are the most common reasons a journal is rejected:

• Not enough CAD buying power: The CAD in the account dropped below the fee plus tax before the journal was processed.
• No province on your profile: Tax is based on your province, so the journal can’t be processed without one. Update your address, then submit a new journal.
• Margin restriction: A margin account, or a margin account linked to your account, is under-margined.

Fix the issue, then submit a new journal on the web. If none of these apply, contact our support team.

Norbert’s Gambit compared with converting your cash

This table shows how Norbert’s Gambit and a standard conversion differ. Which one costs less depends on the amount you convert and market conditions at the time.

Frequently asked questions

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