tag:blogger.com,1999:blog-5465015914589377788.post14938241421385399..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Trying the Norbert Gambit at BMO InvestorlineMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-5465015914589377788.post-51515235061719412372020-11-02T19:10:01.322-05:002020-11-02T19:10:01.322-05:00The comment above is a reply to Canadian Capitalis...The comment above is a reply to Canadian Capitalist's comment:<br /><br />@Michael: Thanks so much for the mention. It's interesting to read your experience with BMOIL. The huge advantage of converting CAD to USD with DLR, IMO, is to precisely avoid what Canadian Investor found out. The market moves do not matter because once you purchase DLR, you have locked in your exchange rate.<br /><br />I'm a little surprised that the BMOIL rate is only 0.6%. That's really good. In my experience, TDW typically charges 1.5% or so each way.<br /><br />I'm given to understand that with BMO and RBC, you can buy DLR and sell DLR.U the same day and their systems are set up to handle this. Unfortunately, it is not true at TDW.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-86481917510254944062013-07-15T20:04:05.188-04:002013-07-15T20:04:05.188-04:00@William: I haven't tried the Norbert gambit ...@William: I haven't tried the Norbert gambit in reverse. I think the reason for using DLR is that there is limited risk of price changes. You can get tighter spreads using stocks that list in both countries, but there is a higher risk of a price change between trades.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-19509108347301936092013-07-15T16:53:53.319-04:002013-07-15T16:53:53.319-04:00Hi Michael,
have you had any experience doing the...Hi Michael, <br />have you had any experience doing the reverse? <br /><br />also is there a reason why DLR/DLR.u is the popular choice for the Norbert Gambit?Williamnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-83484197354184149222013-07-08T14:38:00.233-04:002013-07-08T14:38:00.233-04:00@Kaycee: It worked fine for me as described in th...@Kaycee: It worked fine for me as described in this post, but I haven't had a need to do it since. If you have any concerns, you're probably best to call Investorline before you begin to see if the process has changed. Make sure to be clear that you'd like to do it all online and if they can't do that, you want the same low commissions.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-91646174564346627572013-07-08T14:32:16.069-04:002013-07-08T14:32:16.069-04:00@Michael I just read that you are happy to get que...@Michael I just read that you are happy to get questions from beginners, well whatever comes before beginner, I'm that. I'm currently looking to do exactly what this post entails, the Norbit Gambit with BMO Investor Line. Is this still a feasible way to exchange Canadian currency at a good rate? Any knowledge or insight you could give would be more than appreciated. Thanks!Kayceenoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-76311391842941452982012-07-05T15:22:22.942-04:002012-07-05T15:22:22.942-04:00Just did the buy DLR then sell DLR.U today at BMOI...Just did the buy DLR then sell DLR.U today at BMOIL and it all went smoothly (their system still doesn't handle DLR.U online so they offer the 9.95 trade commission when doing it through a rep; funny thing is that the transaction done by the rep - sale of DLR.U showed up immediately online). I asked about currency conversion from the rep or online and it was the exact same rate to the penny. Mind you, it was a relatively small amount - a few thousand $$ - not the $100k of big rollers like Michael!CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-1650602858068944002012-03-09T16:48:59.438-05:002012-03-09T16:48:59.438-05:00@CC: I agree that DLR gives an advantage, but on t...@CC: I agree that DLR gives an advantage, but on the other had, it's spreads are bigger than many other stocks. The 0.6% is only half the spread and it is on $100,000. The full spread is 1.2% and this may be higher on smaller amounts.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-40519211780843210912012-03-08T18:26:23.602-05:002012-03-08T18:26:23.602-05:00@Bret: I just checked my account and the DLR and ...@Bret: I just checked my account and the DLR and DLR.U positions are gone. It took a week from the day that I made all the trades.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-39394582109729170622012-03-08T16:54:14.750-05:002012-03-08T16:54:14.750-05:00I bought DLR at 9.83 late last week. Called them ...I bought DLR at 9.83 late last week. Called them Tuesday to transfer over to US. Called them this morning to sell DLR.U with a bid/ask of 9.94/9.95. I sold with a limit of 9.94 and it filled quickly.<br /><br />I'm seeing the same thing as you with DLR still in my account as well as the US cash. IL support told me that will go away in a couple days.Bretnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-20116737633637894802012-03-08T16:45:57.104-05:002012-03-08T16:45:57.104-05:00@Bret: It certainly would be nice to be able to d...@Bret: It certainly would be nice to be able to do the entire transaction online. When you did this, were you happy with the implied currency conversion rate you got?Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-32482120148884705312012-03-08T16:43:09.213-05:002012-03-08T16:43:09.213-05:00I just did the same things at IL. I had to call t...I just did the same things at IL. I had to call them to sell as DLR.U since their website isn't capable of trading the US version yet. They mentioned that their IT team is working on adding this to their online trading. Hopefully soon.Bretnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-66364526278023579902012-03-08T11:04:34.216-05:002012-03-08T11:04:34.216-05:00@CanadianInvestor: The 1% loss is disappointing. ...@CanadianInvestor: The 1% loss is disappointing. Did you look at the intraday prices at the time to see if both Canadian and US shares moved together? A 1% move seems suprisingly large.<br /><br />As for the long-short issue, it seems that Investorline treats the CDN and US sides of an account as essentially separate accounts. I've frequently has to call them up to move US shares from the Canadian to US side so that dividends don't get automatically converted back to $CDN.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-67144947158665880852012-03-08T10:50:51.350-05:002012-03-08T10:50:51.350-05:00oops, meant say I did the transaction Jan.26oops, meant say I did the transaction Jan.26CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-80825331530191803202012-03-08T10:49:52.505-05:002012-03-08T10:49:52.505-05:00Also with BMOIL, I used inter-listed RY on Feb.26 ...Also with BMOIL, I used inter-listed RY on Feb.26 - bought in CAD and sold in USD. Either the pricing arbitrage wasn't working or the market shifted in the few seconds between the buy, done first, and the sell. In the end it cost me about 1% to do the conversion that way - not too good! Then a month later I had to call in to get them to correct, which they did immediately without question or fuss, a charge for RY's dividends on the apparently (to BMO's computer systems) short USD side of the stock. Guess my error was placing market orders for the stock buy and sell.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.com