Norbert's Gambit at TD Direct Investing | DIY Investing with Justin Bender

[@hbrar9886]

- It's 2022 and it is not T+3 days, but T+1 days now. - You can now transfer without calling the customer service. Go to Accounts menu, then click "Transfer Securities Within TD Direct Investing, including contributions". For me, it didnt transfer the first time, so I had to do the same transfer again the next day. I have run into this same issue at 2 different times. - It can be done with any account and not just RSP. I did it with Cash account.

[@Tych333]

This has saved me so much money, I can't believe I slept on this for so long. Thanks for making such a straight forward step by step explanation.

[@TheDomGirard]

I just called today (March 8, 2019) to ask for a transfer and complete the Norbert's Gambit and the agent told me we can now to it by ourself online. Just have to wait for 2 days (not 3 days anymore) to have the shares in your account and then you can to it online using the transfer button at the top of the page, the same one you use to transfer money between accounts. There's now an option to transfer stocks between accounts.

[@JustinBenderCPM]

@Dominic Girard: Very cool - thanks for the heads up!

[@yolandalau9910]

Hi Dominic, I tried to transfer by myself online, but it said 'DLR CA' is ineligible security for transfer. I'm curious if you have done successfully by yourself.

[@TheDomGirard]

@@yolandalau9910 Hi Yolanda. I'm not sure where you are in the process when it said it's an ineligible security to transfer but if it's when it's time to sell from the USD side of your account, you have to enter 'DLR.U' when you sell. Hope it helps.

[@yolandalau9910]

@@TheDomGirard Just done it online. Thanks for the reply.

[@Manofsteel519]

@@JustinBenderCPM could you do an updated video with this function in it?

[@mre_man]

Thanks Justin. I owned a US wrapped ETF and I kept hearing about Norberts but never bother to give it a try because it sounded so complex. I eventually bit the bullet, sold my CDN Listed ETF, bought DLR, security transfer, and selling as DLR.U. I learned a few things with this entire process. You will probably lose some money due to currency/price fluctuation because you have to wait a bit for trades to settle. Also trying to sell it took all day to fill 300,000 units. I won't; be moving this much cash going forward but man I'm used to instant transactions!

[@mrwrapper]

Very cool Thanks ... I heard about this a few months ago but never followed up.

[@simpsonpropertiesltd]

Great video Justin! Quick update for everyone. You can do the transfer yourself without calling TD: -Click on the "Accounts" tab -Click on "Security Transfers" - Select the "from account (CDN)" to "account (USD)" - Select the symbol ie. DLR and number of shares This could take up to two business days to settle but normally settles right away.

[@bobcajun77]

I just tried it and got an error message: This security is ineligible for transfer. Perhaps I need to wait 2-3 days for the security to settle in my CAN trading account before attempting to do the transfer. I bought DLR this morning.

[@simpsonpropertiesltd]

@@bobcajun77 maybe you have to wait a few days. I highly recommend you check out Interactive Brokers. It’s a much better brokerage, less fees, you can easily convert CAD to USD at spot pricing.

[@jayeshchangela7118]

Just completed Norbert's Gambit recently (July 2020), and you can do as Dominic said in the comment below. Or alternatively, once you purchase the DLR in $CAD, you can call a TD agent to have them immediately journal over the funds to the US Side and settle them as cash. In this method, TD charges $43 for the transaction instead of the typical $9.99 fee if you do it yourself online, but the transaction is done immediately (so your money isn't subject to the up/down of the DLR stock for 2 days as you're waiting for your initial DLR purchase to settle). Note though that the US cash still takes two days to settle and appear as accessible cash in your account after the TD agent has processed it.

[@josephchou47]

So you did not have two days after you purchased DLR.TO?

[@drewdeezee]

I've just completed the entire process and it worked as Justin described (T+3 then ask TD to transfer shares over to USD). Thank you so much!

[@JustinBenderCPM]

@Andrew Paguio: Excellent news!

[@monctonstrong8423]

I do USD RRSP once a year and always watch this video as a refresher, its 2024 now and its only T+1 to do the trade

[@BrianThrives]

Is that true now already for Canada? I read just now online that T+1 is coming at the end of May (maybe only for the US?).

[@AL.BUNDY.]

Ty for providing us a step by step Norbert's Gambit tutorial. I read ur name as Justin Bieber

[@ChrysGringo]

Hey Justin, thanks for sharing, your videos are great. What's the less expensive broker to trade credit spreads in Canada with low volume? Like in the end of the day counting commissions live data package and fees? Thanks

[@JustinBenderCPM]

@Chrys Gringo: I have absolutely no idea.

[@ChrysGringo]

DIY Investing with Justin Bender thx anyway :)

[@janetjianart]

Great video, thanks for sharing, if do it in TSFA, buy DLR ETF and sell DLR-U ETF in few days, will be treated as short trading in TFSA?

[@TakashiNippon]

Been using Norbit and Gambit for ages, i have both TD and RBC... the great thing about RBC u dont have to call u can easily journal shares online

[@JustinBenderCPM]

@Takashi: That is a big benefit of using RBC Direct Investing to implement Norbert's gambit (although I have found that they sometimes charge debit interest if they process the transfer of shares after the settlement date, so you may need to call them anyways to have it reversed).

[@JessEduDeviaje]

Thanks for the video, Justin I'm new to this and I just opened a US and a CAD cash DI. Where should I transfer the money from my checking, in the US account if I want to buy US stocks and in the CAD account if I want to buy CAD stocks? Or I can do everything from my CAD cash DI account and TD will convert the money? What is more beneficial for exchange fees? Thanks lot for your time

[@a_d_s5361]

Great video thanks for uploading. The only drawback with TD is the settlement wait period, which during that time the currency exchange rate could change for the worse (or better), right? I heard RBC is immediate which eliminates that variable. Also with immediate transfers you could do any dual listed security like TD or CP or BAM etc without worrying about stock price fluctuations within a settlement period.

[@bobsmith2886]

Hi Justin, if we want to go from USD to CAD (Reverse Gambit), do we buy DLR.U with USD to the TSX in our US TFSA, then journal the shares over to CAD TFSA? It seems weird that we'd use USD to buy DLR.U on the TSX

[@simonburger]

Hi Justin, Thanks for the informative video. Wondering if I can use this method to transfer canadian dollars in to USD and then buy individual stocks rather than ETFs?

[@JustinBenderCPM]

@simonburger: You can definitely use your US dollars to buy US-listed individual stocks if you prefer.

[@Zenbeau]

Don't you essentially still lose money on fees even with Norbert's gambit? the only difference is now instead of the 1.5% foreign exchange fee you are paying in the form of commissions since to buy and sell DLR and DLR U you have to make 2 trades and on top of that the wait time might offset the value of your investments so you might have a loss on it. am i right? at 2:34 you can see he has a loss of $88.71/-1.95%

[@laurenbernardo13]

Yup exactly. Now that the markets are volatile it's a bit riskier. But you save big on a large money transfer, but if it's small $'s may not be worth it. I'm debating on doing it right now!

[@bradcampbell1905]

@@laurenbernardo13 Sorry for these questions butwhich way are you converting C$ to US$ or vice versa? Will you use DLR or some other dual listed stock? Are there any Withholding taxes you are concerned with?

[@laurenbernardo13]

@@bradcampbell1905 ​ I'm doing USD to Canadian. I was going to use DLR, I'm assuming I can do it the opposite way of the video? For the withholding taxes that's already happened when I sold the US shares I was holding that were not in a TFSA/RRSP

[@bradcampbell1905]

@@laurenbernardo13 Me too i.e. USD to CAD & trying to decide if I use my cash accounts or margin accounts for doing the transacting. Yes it works the opposite way as I understand it. I assume I can't use my RRSP accounts because I would blow the limits. My thinking is to convert a good chunk now but wait & see for awhile with upside stopped at 65 cents (wishful thinking?) & downside at 75 cents.

[@laurenbernardo13]

Brad Campbell mine is currently in cash but yes need to keep an eye on limits as I’m moving mine to my TFSA. Tracking the 2 right now on my watch list but looks like they don’t move a ton

[@chantalmoore3158]

Hey Justin, thanks for the video. When I am in my CDN SDRSP and click on Buy/Sell, then put DLR in the symbol field, the only Canadian option that shows up is DLR.U, not DLR, like yours. Do you know why this would happen?

[@JustinBenderCPM]

@Chantal Moore - I don't have the same issue. Are you trading in a TD Direct Investing account? If so, perhaps try typing "DLR CA". Also, if you're trading on your phone, try trading on a desktop/laptop instead (or try switching browsers).

[@FusiaKoto]

Can you explain how this is better than simply converting the currency? I am aware that the spread on conversion is not great, but this method also seems to have significant friction. Is there an equilibrium point where one one side the spread is more efficient and on the other the fees are?

[@JustinBenderCPM]

@FusiaKoto: I would estimate the equilibrium point would be at around $2,000 CAD. Converting around $10,000 CAD using Norbert's gambit would save you roughly $70 after all fees.

[@pangosaurus]

Is it possible to journal the shares to the other currency instantly after purchase? I'm worried about currency fluctuations in those 3 business days

[@JustinBenderCPM]

@pangosaurus: You could call TD and ask them to sell DLR.U in the US dollar account on the same day, but I believe they will charge you a full brokerage commission of about $43: forums.redflagdeals.com/recent-norbert-gambit-experience-td-di-2074734/

[@PositiveInvesting]

Either way you would have to deal with currency fluctuation if you converted via non-norbert gambit :) *New Stock Market Videos Now!*

[@MrBloonbloon]

can you add the security transfer part now that you dont have to call in to TD.

[@lloydlconcannon]

Hi Justin, Thanks for sharing. I'm just in the process of doing the opposite of converting from USD to CAD. I bought DLR.U yesterday. Can I wait a day or so and transfer through securities or do I have to call TD? I'm getting mixed feedback on this. Cheers!

[@sedul2006]

Hello, in a Margin Account, is there a need to wait for the trade to settle for DLR on TSX (for CAD->USD) (T+2 days), in order to journal the share? (as in you still need to own it to be able to do this correct?).

[@wacousta1832]

Thank you Justin for the video! Forgive me for being a noob, but I just can't wrap my head around one thing: aren't DLR and DLR.U technically two different ETF's, even though they hold the same things? They have different trade volumes for example. If I buy one and sell the other, how is it different from buying XIC and selling VCN? (Ok, so in this case the two are offered by different companies.) And yet, in your video, when you buy DLR and sell DLR.U, the DLR ownership goes from 451 to 0 once the order for selling DLR.U is filled. This is obviously what we want, but I'm just curious about how this works. Thanks again!

[@JustinBenderCPM]

@Wacousta: Great question! DLR and DLR.U are considered identical securities, as they have the same CUSIP number (#44049C401) - CUSIP stands for "Committee on Uniform Securities Identification Procedures". Because they are identical, TD has no preference for which holding you use to offset your debit position in the USD account. So when you sell 451 shares of DLR.U in your USD account, you can provide TD with the same number of shares of DLR on the settlement date to offset the debit position (as far as they're concerned, you provided them with the correct number of shares of security #44049C401). Norbert's gambit can also be implemented using inter-listed stocks (i.e. individual stocks that trade on both the Canadian stock market and the US stock market, such as RY).

[@wacousta1832]

Thank you for the explanation!

[@JustinBenderCPM]

You're very welcome, Wacousta :)

[@xoioi]

Hi Justin Bender, thanks a lot for this great video. After seeing this, I am having a burning question now. How much money can the DLR provider earn by setting this ETF up? Or is this set up just for the convenience of some traders? Is this idea able to be commercialized for other types of currencies? I read DLT Prospectus but I am not very sure...Thanks a lot if you or some fellows can shed light on this question.

[@bobhoskins9595]

As I understand (and please correct if wrong) this involves 3 transactions. The purchase, the journaling and the sale. As the settlement time for a stock is 2 day and a fund is 1 day it seems wise to use an fund. Journaling apparently takes 2 days so its 4 business days. Not good! I heard that if one does a broker order it can be done in 1 day. If you're moving a significant amount of money ($100,000+) paying $30-40 more for the transaction it would be a small price to pay. But I wonder if you need to pay that brokerage fee for both the buy and sell? What about the journaling? Is there a charge for that? And how does this compare with using Forex?

[@JustinBenderCPM]

@Bob Hoskins: I always prefer a brokerage where you can buy and sell DLR/DLR.U at the same time online. I would look at RBC Direct Investing, if you're nervous about waiting for settlement.

[@bobhoskins9595]

@@JustinBenderCPM Was that your attempt at an answer? I made several points hoping to be corrected if something was wrong. I doubt if I got everything right. Then I asked several questions, none of which you answered.

[@JustinBenderCPM]

@Bob Hoskins: Please check your attitude - I'm answering these questions (and thousands of other ones) with what limited time I have (for free, I might add). - DLR is an ETF that holds US dollar cash and equivalents (it settles T+2). So your exposure is to the US dollar for about 4 days. If you are uncomfortable with this exposure, you can call TD to have them process the transactions immediately at their telephone rate (of about $43). - You would only need to pay this fee for the sell (as you can buy DLR online yourself). - Not sure what you mean by "using a fund" that settles T+1. Investment savings accounts (like TDB8150) settle T+1, but Norbert's gambit cannot be implemented using these products. - No charge for journaling - Forex rates change day to day (and differ by institution, and by the amount you're converting). If you're converting $100,000 CAD, call TD and ask them how many US dollars they would give you. Then, take $100,000 CAD, subtract the commission to buy DLR, divide this by the ask price of DLR, multiply this by the bid price of DLR.U, and subtract the commission to sell DLR.U. Then you can accurately compare the figures.

[@bobhoskins9595]

@@JustinBenderCPM Thank you for that explanation. That will be very useful for many. I found that it may be preferable to just use a stock that trades on both exchanges. Apparently the journaling (at least with Q-Trade) is immediate or same day. I'd rather be in a stock than in a forex transaction as well. For people not invested in a stock than the ETF is a logical choice.

[@ryanm7171]

Does this also work in a RDSP account which doesn't have a USD side per se but does allow the purchase of USD securities to be held alongside CDN ones? Thanks. I miss hearing from you.

[@JustinBenderCPM]

@Ryan Maharaj - If you can't open a U.S. dollar side of an account at your brokerage, than the Norbert's gambit strategy will unfortunately not work there.

[@carkarlaw]

Why do we need to do it on rrsp or tsfa? New to this , and wanted to get us money and avoid the exchange fee. A little lost to be honest.

[@royaltunes451]

Hi Justin, I was curious about TD's $43 brokerage phone call fee, is there any way to Avoid the fee? Thanks ahead!

[@JustinBenderCPM]

@Royal Tunes: Place your trades online (don't phone them to place a trade, unless it can't be completed online - in which case, demand the regular online commission rate).

[@jordanwilliamchow]

Hi I was wondering, would this same process be used for doing a reverse Norbert's Gambit?

[@JustinBenderCPM]

@Jordan Chow: Yes, the process would be similar for a reverse Norbert's gambit (i.e. converting US dollars to Canadian dollars). You would buy DLR.U with your US dollars in your US dollar account, and sell DLR in your Canadian dollar account.

[@alexbart]

Thank you Justin for the video! Very helpful! Can I use the same method in my Cash US account to convert USD to CAD? Any specifics for that procedure?

[@JustinBenderCPM]

@Alex Bart: The procedure is very similar. You would buy DLR.U with your US dollars in your US cash account, request a transfer the shares from the US account to the CAD account on the settlement date, and then sell DLR in the CAD cash account.

[@willyum1208]

You don't need to call to journal anymore with TDDI, click 'Accounts' > 'Securities Transfer' and select the accounts to transfer from and to. Pin this!

[@KOOWALLLLLLLLL]

@@willyum1208 Thank you, and I don't have to call to convert my US dollars to Canadian dollars?

[@germany1314]

@@willyum1208 thank you so much for this piece of information!

[@zozoconde3854]

Now no need to call TD to transfer from CAD account to US account. You can do it by yourself on TD Web Broker.

[@scsc7244]

If I have 5 shares of Tesla in TD CAD investing account ( invested 2 years ago and suffered the high fees- painful mistake) can I transfer that to my TD USD investing account using the Norbert method but without selling my shares? I’m trying to avoid the fees they would charge when I sell

[@SC_Can]

Waiting 3 days is to long to be out of the market IMO. TD needs to figure out a faster way to do this.

[@ScottOctober]

great stuff!! Thanks a bunch I wasn't trying to get loads of exchange fees ☺

[@IBfreshTV]

Hi Justin, once you have the USD balance in your Questrade account, can you withdrawal the USD to your Canadian Bank Account using an EFT? Or do you need to do the reverse of the Gambit?

[@JustinBenderCPM]

@STYLEbyMOI: You will first need to open a USD chequing account (in order to hold US dollars). After that, I would contact Questrade to find out how to transfer the US dollars from the Questrade account to your new US chequing account (you may need to request that a manual cheque be mailed to your home address, and then walk it over to your bank and deposit it).

[@hua821]

HI JUSTIN, as a beginner I accidently bought blackberry stock under the td direct investing canadian cash account, i guess now it is exposed to any potential taxes, should i transfer it to TFSA USD account? CAUSE I KNOW BB is also trading in NYSE, or can i shift it to TFSA canadian dollar account? thanks ahead!

[@JustinBenderCPM]

@imzh imzh: If you have TFSA contribution room, you could ask TD to contribute the shares in-kind from your Canadian dollar cash account to your Canadian dollar TFSA account (I don't see any reason to transfer it to a US dollar TFSA account). Any unrealized gains on the shares would be realized, but any unrealized capital losses would be deemed to be a superficial (so you would lose them).

[@hua821]

THANK YOU SIR!

[@Lucy-oz5kt]

Hi Justin, do you know if the DLR in the CAD account can be transferred to the USD account online at TD Direct Investing? I just bought some DLR and tried to transfer them to the USD account, but it is saying the ETF is ineligible to be transferred online. Is it because i have to wait for the purchase to settle first? Thank you!

[@JustinBenderCPM]

@Lucy - That's correct! You would have to wait for the trade to settle first. If you have any issues transferring DLR to the USD account on the settlement date, I would recommend calling a TD rep to see if there is another issue with the platform.

[@piroo26]

Hi Justin, Can we transfer USD to chequing account from direct investing or we have to turn them in to CAD before transferring to chequing account? is there a way to change CAD to USD other then using direct investing( Gambit) ? Thanks

[@JustinBenderCPM]

@mur do: I'm not certain - you'll have to speak with someone at TD Direct Investing. At the very least, if you have a USD chequing account, you should be able to request that a USD cheque (from your TD Direct Investing account) be mailed to your address, and then walk it over to the bank and deposit it into your USD chequing account (but hopefully they have a better solution). You can call TD Direct Investing and have them convert your CAD to USD, but you will have to accept their higher rates (this is generally your best option for amounts below about $3,000 CAD.

[@paulwilcott5228]

Yeah and you call TD Direct investing and they don't answer! I've called 3 times now and have waited in total over 4 hours. One time I waited the full 2 hours and then it just cut off the phone call....no chance to leave a message....no call back nothing. Absolutely terrible customer service. I am strongly considering switching to another bank. How can I execute this trade if I can't get a hold of a human being at TD to transfer the funds?

[@Neolisk]

Hi Justin, what if I cannot get hold of TD support at said phone number? I tried for 7.5 hours during 4 days. I tried transferring myself via security transfer, but it still sits in the same account, although the flag indicator changed.

[@JustinBenderCPM]

@Neolisk - When you do reach a TD rep, I would insist that they reimburse you for any debit interest incurred. I would also recommend calling them first thing in the morning (at 7 am ET) - early bird gets the worm ;)

[@Project2013B]

I've done the same thing, but the same day I bought DLR, I called them and asked them to 'journal' DLR over to DLR.U. Is my method more prone to mistakes if they somehow forget to 'journal it over' once the settlement date arrives?

[@JustinBenderCPM]

@Johnny Ancich: Perhaps just ask for the TD rep's name and extension number when you call, and include this in your personal notes (along with the date and time of your phone call). If they make an error and charge you debit interest, you should be able to have them reimburse you for their oversight.

[@Gypse404]

i know this was made in 2017 but can i transfer my DLR from my CADRSP to USDRSP via securities transfers in TD WebBroker?

[@JustinBenderCPM]

@Charles Leung - Yes, you can now request the security transfer online at TD :)

[@sSSspidermanNNn]

We can do the similar trick with other bank's investment line, such as HSBC and CIBC, right?

[@TakashiNippon]

No for HSBC and Yes for CIBC

[@sSSspidermanNNn]

@@TakashiNippon Thank you!

[@jaskaransangha7241]

Does this affect TFSA Contribution room?

[@JustinBenderCPM]

@Jaskaran Sangha - no, implementing the Norbert's gambit strategy in your TFSA does not impact your TFSA contribution room.

[@anthonytam5633]

So is this method preferred to just a cash transfer between CAD and USD accounts? Looks like the exchange rate you got in this method at that time was 1.3402 (5994.76/4472.95), which is a 0.7% fee on the base rate at the time (1.3329).

[@JustinBenderCPM]

@Anthony Tam: It is generally more advantageous to use Norbert's gambit whenever you're converting at least $3,000 CAD to USD.

[@Neolisk]

@@JustinBenderCPM The amount does not matter, it's still 0.7% slapped on the amount, much higher than 43 dollar commission they charge over the phone. I think that's what Anthony meant. $70 > $43

[@silverfox1234]

@@Neolisk By calling them to convert, besides paying the commission wouldn't you still be paying the higher currency exchange of ~2% instead 0.7%

[@wawakong]

Hi there just a few questions , why do I have to.wait 3 days , can I do it on the same day (u know the price of stock might drop )

[@JustinBenderCPM]

@Dongshi Shen: It's TD's process - you can switch to a brokerage that doesn't require you to wait if you prefer (such as RBC Direct Investing or BMO InvestorLine).

[@berrcutio]

Thanks for the video, but are you sure it still works like this? I just tried the reverse (USD to CAD) with 1000 DLR shares and I'm down 300+ dollars despite that the rate was exactly the same, because both the DLRs you mention in this video are actually priced in CAD.

[@JustinBenderCPM]

@berrcutio: I've implemented hundreds of gambits, and they work as suggested. Keep in mind that when you buy DLR, you are immediately converting your Canadian dollars to US dollars (as DLR holds US dollars), so fluctuations between the US and Canadian dollar can impact your return when quoted in Canadian dollar terms (as DLR is).

[@AndyDLee]

I know you recommend rrsp because of withholding tax but isnt that only applicable for dividends? From what I read it doesnt matter if you only us equity

[@JustinBenderCPM]

@Andy D. Lee: I take it you mean, "you recommend US dollar RRSPs because of withholding tax". If an investor is comfortable trading US-listed foreign equity ETFs (which many are not) and using Norbert's gambit to convert their Canadian dollars to US dollars (which most are not), than investing in US-listed (rather than Canadian-listed) foreign equity ETFs in an RRSP can help mitigate the tax drag on dividends (this can add up to about 0.35% per year in lower taxes and product fees on the foreign equity allocation of your portfolio). I'm not sure what you mean by "it doesn't matter if you only hold US equity" (you'll have to clarify, as withholding taxes apply on US equities and US equity ETFs and US equity mutual funds) Please refer to my white paper for detailed information on foreign withholding taxes: www.pwlcapital.com/wp-content/uploads/2018/06/2016-06-17_-Bender-Bortolotti_Foreign_Withholding_Taxes_Hyperlinked.pdf

[@sSSspidermanNNn]

After the fund has been converted to USD, is there a way we can transfer the fund to a US bank account? Thanks.

[@JustinBenderCPM]

@Y Zhao: If the US dollars are in a non-registered brokerage account (not an RRSP account, like in the video), you can request a US dollar cheque mailed to your address from TD Direct Investing (just give them a call). You could also request a US dollar wire order, but TD generally charges for this (I've heard that the cost can be up to $80, but you could ask TD about this option too).

[@frozenarbitor]

Hi Justin, are you able to do the same with TFSA account instead of RRSP? Thanks!

[@JustinBenderCPM]

@frozenarbitor: You can do the same thing within a TFSA account, but the main benefit of buying US-listed ETFs with US dollars is mitigating the foreign withholding tax drag in an RRSP account.

[@frozenarbitor]

Thanks so much for the quick reply. I wasn't aware of the difference in foreign withholding tax between RRSP and TFSA.

[@JustinBenderCPM]

@frozenarbitor: You're very welcome - please feel to read our article on foreign withholding taxes for more information: www.pwlcapital.com/pwl/media/pwl-media/PDF-files/White-Papers/2016-06-17_-Bender-Bortolotti_Foreign_Withholding_Taxes_Hyperlinked.pdf?ext=.pdf

[@clarifyingquestions]

Is this info current in October 2022?

[@CoolTheFame]

Can you sell short the same amount of stock DLR.U? And wait three days for automatic conversion of from DLR to DLR.U?

[@JustinBenderCPM]

@MyBoy: Unfortunately you cannot place the buy of DLR and sell of DLR.U on the same trading day using the TD Direct Investing online platform (you could call TD Direct Investing and see if they will sell DLR.U for you, but they'll likely charge the full phone commission for the trade).

[@Alikhan78611]

why I can't see comments here...

[@mythical.Cels143]

do you really have to call td? or you can just directly sell it to dlr U after you recieve dlr.ca .. what if ill buy from my savings account

[@JustinBenderCPM]

@Celso ervin Luis: At TD, you unfortunately are stuck with calling them. I'm not sure if I understand your second question (do you mean, what if you sell your TD Investment Savings Account to buy DLR)?

[@mythical.Cels143]

DIY Investing with Justin Bender thanks for your reply sorry if you didnt understand my 2nd question please forget about it how about in rbc and scotia itrade do you still need to call them to make a N gambits

[@JustinBenderCPM]

@Celso ervin Luis: At RBC you don't have to call them (which is a plus). Scotia iTRADE doesn't currently allow the Norbert's gambit in RRSP accounts (they offer "U.S.-Friendly RRSP" accounts instead).

[@1ag18]

why is it taking so long to fill my order - im not even selling that much dlr.u but its taking forever to fill and i set it at the ask price

[@JustinBenderCPM]

nhw - If you’re selling an ETF, you need to use the bid price (not the ask)

[@mikemolina7163]

is it also possible to just transfer it directly from cad to usd to avoid this hassle?

[@JustinBenderCPM]

@Mike Angelo Molina: Taking the bank's higher currency conversion rate (and receiving less US dollars) is definitely an option (and usually the best one for smaller amounts below $3,000).

[@mikemolina7163]

@@JustinBenderCPM Thank you!

[@Abubaker42]

@@JustinBenderCPM thanks I was looking for the point/price where it becomes ineffective.

[@jakekwon8276]

Thanks for the upload. Is there any reason why you place a Limit order (instead of a market order)?

[@JustinBenderCPM]

@Jake Kwon: A limit order protects you in case the market malfunctions (such as during the flash crash of 2010). If you place a market order, you're basically saying to the market "I'll take whatever price you feel like offering me".

[@Torontogtacleaners]

Can Norberts gambit be done in a personal account ?

[@JustinBenderCPM]

@marco Gomez - Norbert's gambit can be implemented in a non-registered investment account as well.

[@Torontogtacleaners]

@@JustinBenderCPM thanks for ur reply is norbets gambit cheaper then just exchanging ur 6000 can to usa currency ?

[@JustinBenderCPM]

@@Torontogtacleaners - It's likely cheaper, depending on the brokerage.

[@GerardAlmonds]

Does this work with TFSA?

[@JustinBenderCPM]

@Ryan Almoneda - This works with a TFSA as well.

[@sSSspidermanNNn]

Can we use TSFA instead of RRSP?

[@JustinBenderCPM]

@Y Zhao: Sure, although the main benefit of purchasing US-listed ETFs is the reduction of foreign withholding taxes in an RRSP (there is no way to cost-effectively avoid FWT in a TFSA).

[@sniperfx20]

@@JustinBenderCPM if I'm looking for a way to convert CND to USD in TFSA and buy US stocks. Is this not the best way? Also I thought FWT won't apply to TFSA because it's tax free?

[@holdencaulfield1983]

Thanks for the videos Justin! Will you be doing a CIBC Investor's Edge soon?

[@JustinBenderCPM]

@holdencaulfield1983: That's going to be one of my next videos! :)

[@JustinBenderCPM]

@holdencaulfield1983: Nobert's Gambit at CIBC Investor's Edge is now available! kzbin.info/www/bejne/aHSrqZJrjLmpqqM

[@briannguyen1134]

Can you do this in a tfsa

[@JustinBenderCPM]

@Brian Nguyen - Norbert's gambit also works in a TFSA

[@briannguyen1134]

@@JustinBenderCPM thanks :)

[@wumeaser7623]

TD Bank agrees to settle overdraft fee lawsuits for $70 million

[@tfived4339]

Thanks for this!

[@JustinBenderCPM]

@Think - Do Discover: You're very welcome - good luck!

[@teekoh]

Is it possible to have a TD Invest Direct US Dollar TFSA Account instead of an RRSP account to do Norbert's Gambit?

[@minqingliang]

same question here, i have opened tfsa accounts for CA and US dollar, but i am curious if it will work in the same way as RRSP or not ？

[@johnousfredricson3146]

thx

[@danzwku]

why not just convert ur CAD to USD dollars?

[@Tych333]

This is cheaper if dealing with more than a few thousand.

[@billb5379]

I've been watching your videos for over 2 years and I just realized your name isnt "Justin Bieber".

[@nooraziz3020]

Bank's are not stupid, wouldn't they put something in place to safeguard against this?

[@wumeaser7623]

Td direct investing is the worst investment institution I ever experienced with，highest commission fee and convert rate, worst customer service, lots of tricks to cheat inexperienced customers. Not recommended!

[@JustinBenderCPM]

@WU MEASER: How do you really feel about TD Direct Investing? ;)

[@wumeaser7623]

I usually trade Canadian stocks on my phone. I made profit on it. No problem w neither the customer service nor platform there. But it is not convenient to transfer fund and trade stocks in USA market. I am with TD bank for about 20 years. Td is the only bank I have account with. So I started to trade stocks in cash account w td earlier this year as well. I prefer cash account rather than margin account because I was told that cash account only can trade with the fund I have, the margin account allows the broker lends the customer cash to purchase stocks. As a new bee, I never thought to borrow money to trade stocks. However, I was threatened by td credit department to deposit dozens of thousand USD in an hour when market crashed or they would sale my stocks. I was so scared and cried all day and night. The credit department called me again on second morning to threaten me to deposit dozens of thousand CADcash in a 2-3 hours. The amount is too much for me to handle. I was collapsed. The bank then blamed me to take all the loss because it is a self direct investing account. I was told later that the bank noticed that I over borrowed money a few weeks before the market crashed. It usually takes 2-3 business days for credit department to notify the customer. She did not know why it took a few weeks before the credit department contacted me. It is direct investing system’s mistake. Now td blames everything on me. Moreover, td direct investing has the highest commission fee, most unreasonable covert rate and worst customer service. Their platform has lots of problems. When the problems occur, the only way to solve the problem is call in. I usually need to get up very early to call in order to get help. But some problems never been solved because the unqualified staff and inefficient work, confusing instructions were received from different departments. I requested for the service agreement for a few months, phone in to the direct investing, I was told to get it in the branch. I made several appointments with the branch to solved the problems w td direct investing. I was told to call direct investing directly. The ball kicks back and forth....It took months for me to get a copy of service agreement. However, the problems of their learning section and dashboard are remaining unsolved. The consequences of trading w direct investing with a very short of period led me lost dozens of thousand dollars, also led me suffering anxiety problems. I am a poor TD loyalty victim.

[@DirtyyHouse88]

@@wumeaser7623 Sounds like you bought a leveraged product and screwed yourself. Don't blame TD.

[@wumeaser7623]

Lux Gang I have never traded with the margin account because I do not want to borrow money to trade stocks. The staff from web broker told me that difference from the cash account and margin account is cash account you can only trade with the fund you have in your account. I chose cash account with no hesitation because I have big fund sitting in my account after I sold my property and plan to purchase a new one near my kid after pandemic. How could it happened I traded with the fund that I do not have?! I have a good experience with other trading platforms. I trust these platform. I made profit without forcing sale or threaten problems. These platforms always remind if I do not have sufficient funds to trade. The reps w the td web broker are monsters. The experience with them are nightmare. I would never want to deal with them any more. Thus, I requested to transfer all the fund out of TD after the incident. I know I could not suffer td web broker’s service any more. td then made lots of difficulty after I requested to transfer my fund out after threaten by their staff twice in a raw. Ie: 1) force convert from usd to cad service. At beginning, I refused to do so. then I was threaten not match their criteria to transfer funds out. I then requested to buy DLR.V in usd and then convert it to DLR to save it in my cad account because every one on earth knows that TD has the highest convert fee in Canada. The rep of web broker laughed out loud on the phone and said : how do you know this? He then declined my request. He then covert usd to cad in TD’s rate. Did the rep tell me how much the rate is? No, Never! Do they charge me and tell me how much is the fee. Never, not in once! 2) I have a few RRSP account with different terms. I had more difficulties on transferring these accounts out. I contacted at least two financial institutions. No of them could transfer out these funds successfully including the fund is mature. I then asked the ways to transfer rrsp fund out. It looks like the only way is to transfer these funds to TD web broker first. Then pay td web broker with transfer fee! Do I have any other choices. No! So I did. The experience to transfer The funds in RRSP is another nightmare. Step one, I made a phone appointment to sign all the doc to transfer all rrsp funds in to web broker. Then I was waiting to see my funds in web broker. Several days later, there was no fund showed up. I then called td web broker. I was told that the fund was transferred, but did not connect with my td RRSP web broker’s account! What a h....? Waited for over two weeks, there was one RRSP fund still not received in web broker’s account. I knew I have to be extra patient because web broker service is poor and inefficient. The things usually worse than I thought with web broker. I received a call from a female rep from web broker after two weeks. She told me there was one fund in my my rrsp account did not transfer in to the web broker. She did not explain the reason like always. I then asked her about the fee to transfer out of the web broker. She said is about $160 ( did not remember the exact amount). I questioned her. Is the purpose she called me not transfer all rrsp account together because web broker could charge the transfer fee twice?! She then hanged up, refused to answer my question. 3) finally, my cash account was transfer out successfully. I was happy with that. But the nightmare will never be end if you ever with td web broker. A negative balance showed up on my account after my account was closed a month after. I called in and asked why. In common sense, when my cash account is closed. It means all done! But it is not the case with TD web broker. They will always find a way to torture you to charge you to threaten you...

[@wumeaser7623]

Lux Gang TD Bank agrees to settle overdraft fee lawsuits for $70 million