08 Nov 2012 14 Comments
I had a previous post about how you can do Norbert’s Gambit with RBC Direct Investing, and I can finally report that it also works with Questrade.
The funny thing is that when we emailed Questrade to confirm whether or not it will work, the response was NO! Not letting that deter me, I did a bit of research online, and there were a couple reports that either a. the representative you talked to has no idea what they’re talking about or b. they’re blatantly lying to you to prevent you from doing the maneuver. That being said, a lot of people were reporting success with the maneuver, so I continued on.
The following is a step-by-step guide to convert CDN dollars to US dollars in your trading accounts using Questrade.
1. Ensure that your trading account has both a CDN side and a US side. VERY IMPORTANT – ensure that your account is set up so that all trades settle in Trade Currency. You may have chosen to settle in CDN dollars when you originally signed up for the accounts, which will make this whole exercise moot.
2. Purchase DLR on the CDN side of your account. The market is CDN and the proceeds will be in CDN dollars. Remember to put a limit amount in, as the trading volume for this is not very high.
3. Call or email Questrade to journal your shares from the CDN side of your account to the US side of your account. This can take up to 3-4 business days.
4. Once the shares show up on the US side of your account, it will still show up as DLR.U.
5. When you try to sell your DLR.U shares using their platform, it will be rejected. Apparently, you HAVE to call in to have this trade completed. When you call them, they have an automated message telling you that there is an additional charge for any trades made by them, so confirm that the only reason you are calling in to make the trade is that their platform does not allow you to sell DLR.U. As far as I can tell, the commission charges were as expected, and no additional fees have shown up on the account yet.
Has anyone else tried this with Questrade?
Thanks for reading!