Norbert’s Gambit More on reddit.com

ive recently looked into this and went very deep. 1st place: Interactive Brokers - spot currency exchange: The deliver the true mid market rate to multiple decimal places for a very small commission. for 200k itl be like 4$. Also, >25k gets even tighter spreads. Only downside here is you might get an angry email if you only keep using them for currency echange and dont actually use their product 2nd place: Norbert gambit on 0 commision brokerage: The only 0 commision brokerage in canada that allows you to hold a USD balance and allows you to journal your shares for free is disnat. So doing norberts gambit on disnat is the cheapest method for anything under $9999. So you buy DLR, journal the shares over to DLR.U, and sell it for USD at the true exchange rate paying no commisions at any time. However the catch here is that stock orders are priced a $0.01 increments. DLR is priced around ask:$13.64 bid:$13.63. DLR.U is ask:10.13 bid:10.12. so lets do an example with $101300 USD I would have to buy 10,000 shares of DLR.U at the ask price. journal it and then sell it at the bid price of DLR leaving me with $CAD136300 using norberts gambit and no commisions. However if i try to convert $101300 usd in IBKR, since the quoted exchange rate is to more decimal places, i actually end up getting a bit more ~CAD136350. (ive tried and experimented with this myself). subtract a few bucks for the commision and you still come out on top with IBKR for large amounts. The reason why ibkr is cheapest >10k and NB on disnat is cheapest <10k is because the number of significant digits and commission. for anything 9999 or below disnat is cheaper because 9999 only has 4 digits and the price of DLR is quoted to only 4 digits. More on reddit.com