Is Norbert's Gambit still viable?
Cad to usd
I haven't coverted money in a while using Norbert's Gambit.
I need to convert from USD to CAD so I look at the price of DLR-U and it's $10.27. So in order to convert $10,000 I need to pay another $270 USD.
I know IBKR has cheaper rates but this money in my Questrade account. Questrade charges $0.025 so it will only cost $250.
EDIT:
It does still work.
I was confused. The last time I did it. DLR-U was $10.05, which when I saw that it was now $10.27 confused me.
There is a premium on DLR compared to the actual exchange rate, which makes it work.
So, although it looks higher, when you sell DLR it makes up the difference.
DLR = $14.20
Actual Exchange rate = $1.3833
Difference of around $0.037.
DLR-U = $10.27 USD
$270 USD = $373 CAD
This works out to a difference of $0.0373.