Norbert's Gambit: CAD chequing to USD checking

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phipperdee
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Norbert's Gambit: CAD chequing to USD checking

Post by phipperdee »

I'm a Canadian living and working in the US and I have read and watched a lot about executing Norton's Gambit on various banking platforms. I am almost feeling comfortable with doing this but I'm still wondering about a specific detail. Ultimately, I need to get cash from a chequing account (Simplii) in Canada, to a checking account at an employee credit union in the US. I'm still unsure of the most economical/easy platform to get money from my Canadian account into an online brokerage (TBD), execute Norbert's gambit, and then get the cash into my US account. I'm very open to opening other accounts that would make this economical. Any advise is appreciated.
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Re: Norbert's Gambit: CAD chequing to USD checking

Post by Chuck »

I'm probably not the best person to answer this as I don't have any accounts in US based institutions (I know some people here do). It seems you are going to want 4 accounts all at the same Canadian Institution:

1) A CAD$ checking to move your money in (i.e. replace your Simplii account)
2) A CAD$ Investment account (to buy CAD$ interlisted stocks for the gambit)
3) A US$ Investment account (to journal/sell your interlisted stocks in US$)
4) A US$ checking account to move your money out to your US credit union account

Note: maybe you don't need #4, I have no experience moving cash from Canada to US financial institutions so I don't know the best way.

Out of curiosity, since you are working in the US, isn't your income going straight into your US credit union account? How is money flowing into the Simplii account in the first place? It almost seems you should want to go the other direction.
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Re: Norbert's Gambit: CAD chequing to USD checking

Post by AltaRed »

If the OP does not already have a Cdn brokerage account to do a NG. and depending on the money involved, the OP may just want to use something like XE.com, or Knightsbridge.com. It may be difficult to open a Cdn brokerage account anyway given the OP is a non-resident of Canada, and regardless, Cdn brokerages have account minimums to avoid account administration fees.
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pmj
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Re: Norbert's Gambit: CAD chequing to USD checking

Post by pmj »

Depending if you want to move a chunk of money, or smaller amounts at intervals?
For a chunk of money, I'd investigate the discount FX guys. Also check TransferWise - although it's not as cheap moving money out of Canada as it is from other countries.
For small amounts, get a zero FX-fee C$ credit card, buy stuff in the US with it, pay the bills from yr Canadian bank account.
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kcowan
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Re: Norbert's Gambit: CAD chequing to USD checking

Post by kcowan »

pmj wrote: 18 Nov 2017 17:05For small amounts, get a zero FX-fee C$ credit card, buy stuff in the US with it, pay the bills from yr Canadian bank account.
I think there is only one choice for this: Rogers Mobility Mastercard.
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Re: Norbert's Gambit: CAD chequing to USD checking

Post by pmj »

kcowan wrote: 19 Nov 2017 07:41
pmj wrote: 18 Nov 2017 17:05For small amounts, get a zero FX-fee C$ credit card, buy stuff in the US with it, pay the bills from yr Canadian bank account.
I think there is only one choice for this: Rogers Mobility Mastercard.
Either the Rogers Platinum Mastercard, if you have pre-authorized Rogers or Fido bills to negate the $29 fee, or the Fido Mastercard with no annual fee. The Fido card is identical to the Rogers card for foreign currency purchases, so it's probably a better choice.
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phipperdee
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Re: Norbert's Gambit: CAD chequing to USD checking

Post by phipperdee »

Thanks everyone, couple of great points!

It's a one-time big chunk of cash, and given that I'm a non-resident of Canada now, I think you're right that it will be easiest to forego NG and just stick to Knightsbridge at this point.

I do have an Amazon.ca credit card that has no fx charges that I would use if it was a smaller amount to drain.
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