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Norbert's Gambit on Interactive Brokers: Why You Probably Don't Need It

MTLast reviewed June 2026 by Mike Taylor, Canadian financial writer. Fact-checked

Interactive Brokers is the one broker where Norbert's Gambit usually is not worth doing. Its built-in currency conversion is so cheap that the gambit saves you nothing meaningful. IBKR converts at near-interbank rates with no markup, charging only a small commission of 0.002% with a US$2 minimum. You can still do the gambit there, but for almost everyone the direct conversion is faster and cheaper.

For the general method, see the step-by-step guide. This page explains why IBKR is different.

Why the gambit is pointless here

The whole point of Norbert's Gambit is to avoid the 1.5% to 3% markup that most brokers add to currency conversions. Interactive Brokers does not add that markup. It converts at the real market rate and charges a transparent commission of 0.002% of the trade value, with a minimum of US$2 per order.

On a $10,000 conversion that is the US$2 minimum. On $100,000 it is about US$20. Compare that to the gambit's two commissions plus the bid-ask spread, and the direct conversion wins on both cost and speed, because it is instant rather than a multi-day process.

How to convert currency at IBKR instead

Rather than buy, journal, and sell an ETF, you convert directly:

  1. Place a currency conversion order, routing it through IBKR's conversion function rather than the live FX market order book, so you simply exchange the cash and do not end up holding an unwanted currency position.
  2. The conversion completes in minutes at the market rate, with the small commission described above.

That is it. No DLR, no journaling, no waiting.

The one thing to plan around: the withdrawal hold

There is a rule that catches people who deposit Canadian dollars, convert them, and try to send the U.S. dollars straight out to a different bank. Funds deposited by Canadian electronic transfer can generally only be withdrawn back to the originating bank account for about 60 business days. This is an anti-money-laundering measure, not a currency rule.

It does not affect you if you are converting in order to invest the U.S. dollars inside IBKR. It only matters if your plan was to deposit, convert, and quickly withdraw the cash elsewhere. If that is your goal, factor in the holding period.

When might the gambit still make sense at IBKR?

Rarely. If you specifically wanted to hold DLR or an interlisted security for another reason, you could journal it. But as a way to convert currency, IBKR's direct conversion beats the gambit on cost, speed, and simplicity for essentially every amount.

Frequently asked questions

Should I do Norbert's Gambit on Interactive Brokers? Usually no. IBKR's built-in conversion charges 0.002% with a US$2 minimum and no markup, which is cheaper and faster than the gambit.

How much does IBKR charge to convert currency? A commission of 0.002% of the trade value, with a US$2 minimum per order, and no markup on the exchange rate itself.

Why can't I withdraw my converted U.S. dollars right away? Funds deposited by Canadian electronic transfer can generally only be withdrawn back to the originating account for about 60 business days. It does not affect converting to invest within IBKR.

Can I still do the gambit at IBKR if I want to? Yes, but there is little reason to. The direct conversion is cheaper and instant.

Sources

This article is general information, not financial advice. IBKR's fees and rules change. Confirm current details with Interactive Brokers before you trade.