Free tool
CAD to USD Conversion Cost Calculator (incl. Norbert's Gambit)
See how much you lose converting Canadian dollars to U.S. dollars at a bank, through your brokerage, with Norbert's Gambit or at Interactive Brokers — and how much you could save.
$0 at many brokers
| Method | Est. cost | You save vs worst | Speed |
|---|---|---|---|
| Interactive Brokers spot conversion0.2 bp commission (min US$2) + ~0.01% spread | $4.84 | $495.16 | Instant |
| Norbert's Gambit (DLR / DLR.U)2 × $0.00 commissions + ~0.1% bid/ask | $20.00 | $480.00 | 1–3 business days |
| Brokerage automatic conversion1.5% (typical 1.5–2%) | $300.00 | $200.00 | Instant |
| Big-bank retail conversion2.5% spread (editable) | $500.00 | $0.00 | Instant |
Assumptions are editable and indicative. Spreads vary by institution, amount and time of day. Norbert's Gambit carries a small price risk while you wait for the journal. Not financial advice.
The hidden cost of buying U.S. stocks
When you buy a U.S. stock in a CAD account, most brokerages quietly convert your money at a markup of around 1.5–2% — and do it again when you sell. On a $20,000 purchase, that can be $300–$400 each way. Over years of investing, the conversion spread often costs more than commissions ever did.
Your options
- Bank transfer: the most expensive, typically 2–2.5% or more.
- Automatic brokerage conversion: convenient; usually 1.5–2%.
- Norbert's Gambit: buy an interlisted security in CAD (commonly DLR on the TSX), ask your broker to journal it to the U.S.-dollar side (DLR.U), then sell for USD. You pay two trades' commissions (often $0 now) and a small bid/ask spread, plus 1–3 days of waiting. Step-by-step in our Norbert's Gambit guide.
- Interactive Brokers: converts at near-interbank prices for a tiny commission (0.2 basis points, minimum US$2).
- USD accounts: once converted, keep U.S. dollars in a USD account (or USD TFSA/RRSP) to avoid converting back and forth.
Questions
Is Norbert's Gambit still worth it?
For amounts above a few thousand dollars, usually yes — especially at brokers with $0 commissions. For small amounts the waiting time and hassle may not be worth it.