Is Norbert's Gambit Worth It? Break-Even and Minimum Amount
Norbert's Gambit is usually worth it once you are converting more than about $1,500 to $2,000, and clearly worth it at $5,000 and up. Below roughly $1,000 the fixed commissions cancel most of the saving, so it often is not worth the effort. The reason is simple: the cost of doing the gambit is mostly fixed, while the cost of a normal conversion grows with the amount. The bigger your conversion, the more you save.
This page shows the break-even math, a savings table by amount, and the situations where you should skip the gambit entirely. For the mechanics, see the step-by-step guide.
Why the size of the conversion is what matters
A regular currency conversion at a bank or broker costs a percentage of the amount. At a discount broker that is usually 1.5% to 2.0%. At a big bank it is often 2.5% to 3.5%. Double the amount and you double the cost.
Norbert's Gambit works the other way. Its cost is mostly fixed: a buy commission, a sell commission, any per-request journaling fee, and a small bid-ask spread on DLR. Those add up to roughly $10 to $60 whether you convert $2,000 or $50,000. So as the amount climbs, the percentage cost of the gambit shrinks toward nothing, while the percentage cost of a normal conversion stays the same.
Savings by amount
The table below compares the gambit against a typical 1.5% discount-broker conversion and a typical 2.5% bank conversion. Gambit cost is an estimate that assumes about $10 to $30 in commissions and fees plus a small spread. Your numbers will vary by broker, so treat these as a guide, not a promise.
| Amount (CAD) | Cost at 1.5% (broker) | Cost at 2.5% (bank) | Approx. gambit cost | Saved vs broker | Saved vs bank |
|---|---|---|---|---|---|
| $1,000 | $15 | $25 | ~$15–20 | roughly $0 | ~$5 |
| $2,000 | $30 | $50 | ~$20 | ~$10 | ~$30 |
| $5,000 | $75 | $125 | ~$25 | ~$50 | ~$100 |
| $10,000 | $150 | $250 | ~$30 | ~$120 | ~$220 |
| $25,000 | $375 | $625 | ~$45 | ~$330 | ~$580 |
| $50,000 | $750 | $1,250 | ~$65 | ~$685 | ~$1,185 |
The pattern is clear. At $1,000 the gambit roughly ties a discount broker and barely beats a bank. By $10,000 it saves you well over $100 versus the broker and over $200 versus the bank. By $50,000 it saves hundreds either way.
The break-even point
Against a 1.5% discount-broker rate, the gambit breaks even somewhere around $800 to $1,500, depending on your broker's commissions and whether it charges a journaling fee. Against a 2.5% to 3.5% bank rate, it breaks even lower, often under $1,000, because the bank's markup is bigger to begin with.
A practical rule: if you are converting less than about $1,000, the time and effort probably are not worth the few dollars you would save. If you are converting $5,000 or more, the gambit almost always wins.
When to skip the gambit
Bigger is not the only factor. There are real situations where you should not bother:
- Small amounts. Under about $1,000, the fixed costs eat the benefit. Use your broker's conversion or a low-cost transfer service.
- You need the money fast. The gambit takes three to five business days. If you need the U.S. dollars today, it cannot help you.
- Your broker already has cheap FX. Interactive Brokers, for example, charges about 0.002% on a manual conversion with a US$2 minimum. That is so cheap the gambit's extra steps are not worth it there.
- You do not have a brokerage account. Opening and funding one just to convert currency once is more hassle than the saving justifies for a small amount.
- You are not comfortable with the steps. If buying, journaling, and selling feels like too much, that is a fair reason to use a simpler method, especially for a modest amount.
When it is clearly worth it
- You are converting a few thousand dollars or more.
- You have a brokerage account that supports journaling.
- You can wait a few business days.
- You want to keep as much of your money as possible rather than handing 1.5% to 3% to a bank.
For a $30,000 conversion, the difference between a 2.5% bank rate and the gambit is roughly $700. That is real money for about ten minutes of work spread across a few days.
Frequently asked questions
What is the minimum amount for Norbert's Gambit? There is no hard minimum, but it generally stops being worth the effort below about $1,000, where commissions cancel most of the saving.
At what amount does it break even? Around $800 to $1,500 against a 1.5% discount-broker rate, and lower against a 2.5% to 3.5% bank rate.
Is Norbert's Gambit still worth it in 2026? Yes, for larger conversions. The savings come from avoiding the 1.5% to 3% markup banks and brokers add, and that markup has not gone away.
Is it worth it for $5,000? Usually yes. At $5,000 you save roughly $50 versus a discount broker and about $100 versus a bank.
Sources
- Interactive Brokers Canada, currency conversion pricing: interactivebrokers.ca
- Broker FX markup ranges from major Canadian bank and discount-broker disclosures
- Global X US Dollar Currency ETF (DLR/DLR.U): globalx.ca/product/dlr
This article is general information, not financial advice. Fees and exchange rates change. Confirm your broker's current costs before you decide.