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How to Do Norbert's Gambit: A Step-by-Step Guide (2026)

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

To do Norbert's Gambit, buy a dual-listed ETF such as DLR in your Canadian-dollar account, ask your broker to journal the shares to the U.S.-dollar listing DLR.U, then sell them for U.S. dollars. The process takes three to five business days and converts your money at close to the real exchange rate instead of the 1.5% to 3% markup a bank or broker normally charges.

Below is the full walkthrough, including how many shares to buy, which order type to use, how journaling works at different brokers, and how to get the U.S. dollars out at the end. For the background on what the technique is and why it works, see the main Norbert's Gambit guide.

What you need before you start

This guide covers the common direction, Canadian dollars to U.S. dollars. To go the other way, see the USD-to-CAD reverse guide, which carries a bit more risk.

Step 1: Decide how many shares to buy

Take the amount you want to convert and divide it by the current price of DLR. That tells you roughly how many shares to buy.

For example, if DLR is trading around $14.25 and you want to convert $10,000, then $10,000 divided by $14.25 is about 701 shares. Round down slightly so you don't go over your available cash once commission is added. Buying 700 shares at $14.25 costs about $9,975 plus commission.

Check the live price before you trade, since it moves daily with the exchange rate.

Step 2: Buy DLR with a limit order

Place a buy order for DLR on the Canadian side of your account. Use a limit order, not a market order.

A limit order lets you set the maximum price you will pay. A market order takes whatever price is available, and if the spread widens for a moment you can pay more than you expected. DLR is usually liquid and its spread is narrow, but a limit order costs you nothing and removes the risk of a bad fill. Set your limit at or just above the current ask.

One cost to be aware of: some brokers charge a small ECN fee on certain orders, often a fraction of a cent per share. Placing a limit order that adds liquidity rather than removing it can sometimes avoid it. On a typical conversion this is a few dollars at most.

Step 3: Let the trade settle, then request the journal

After your buy fills, the trade needs to settle. In Canada that is one business day (T+1).

Journaling is the step that moves your shares from the DLR (CAD) listing to the DLR.U (USD) listing. How you trigger it depends on your broker:

There is no exchange-rate spread on the journal itself. You are moving the same units between two currency labels. The journal is also not a taxable event. Only your buy and sell are dispositions for tax purposes. See the tax page for what that means in a non-registered account.

Step 4: Sell DLR.U for U.S. dollars

Once your shares appear as DLR.U on the U.S.-dollar side, place a sell order, again with a limit order. The proceeds land in your account as U.S. dollars.

That's the conversion done. Compare the U.S. dollars you received against what your money was worth at the market rate when you started, and you should be within a fraction of a percent, rather than the 1.5% to 3% a built-in conversion would have cost.

Some brokers let you sell DLR.U as soon as the journal is noted, even before it fully settles. Others want the journal complete first. If you are unsure, wait for the shares to show cleanly on the U.S. side.

Step 5 (optional): Get the U.S. dollars out

If you only needed U.S. dollars inside your brokerage account, for buying U.S. stocks, you're finished. If you need the cash in a U.S. bank account, there is one more leg that most guides skip.

You can withdraw U.S. dollars from your brokerage to a linked U.S.-dollar bank account. Many Canadians route this through a U.S.-dollar account at a Canadian bank, or through a U.S.-dollar account at a digital bank, and then on to a U.S. bank if needed. Each hop can have its own small fee and timeline, so plan for an extra few days if the money has to reach a U.S. institution.

A full worked example

Converting $10,000 CAD to USD, with DLR around $14.25:

  1. Buy 700 shares of DLR at about $14.25, costing roughly $9,975 plus a small commission.
  2. Wait one business day for the trade to settle.
  3. Request the journal to DLR.U (or let it happen automatically, depending on your broker).
  4. Once the shares show as DLR.U, sell all 700.
  5. Receive the U.S.-dollar proceeds, minus two commissions and any journaling fee.

Your total cost is the two commissions, any journaling fee, and the small bid-ask spread. On $10,000 that is usually well under $60, versus $150 to $200 through a discount broker's built-in conversion. (Illustrative numbers. Prices and fees change, so confirm before trading.)

Common mistakes to avoid

Frequently asked questions

How many shares of DLR should I buy? Divide the amount you want to convert by the current DLR price, then round down a little to leave room for commission.

Should I use a market order or a limit order? A limit order. It protects you from a bad fill if the spread widens, and it costs nothing extra.

Do I have to call my broker to journal? It depends. RBC and TD often journal automatically. Questrade and Qtrade allow online requests. CIBC Investor's Edge and Scotia iTRADE usually need a phone call.

Can I sell DLR.U before the journal settles? At some brokers, yes, once the journal is noted. At others you must wait. If unsure, wait until the shares show cleanly on the U.S. side.

How long does the whole process take? About three to five business days from buying to having usable U.S. dollars.

Sources

This article is general information, not financial or tax advice. Confirm current fees and steps with your broker before you trade.