Norbert's Gambit at Questrade

What is journaling?

Journaling is the fee-free transfer of a stock listed on two exchanges (e.g., TSX and NYSE) between two currency accounts. Questrade charges no journaling fees; it takes 3–5 business days.

Example: You buy 1,000 shares of DLR.TO (Horizons CAD Currency ETF) for ~$14,000 CAD. You request journaling to DLR.U.TO (USD version). A few days later, you own 1,000 DLR.U.TO shares = ~$10,000 USD. You sell to liquidate.

Real costs at Questrade

• Buy ETF (DLR.TO): $0 (Questrade offers commission-free ETF trading)
• Journaling: $9.95 CAD + tax = ~$11.25 CAD
• Sell ETF (DLR.U.TO): $0 (commission-free)
• Bid-ask spread: ~0.01–0.05% (negligible on 1,000 shares)
• Total cost: ~$11.25 CAD on $100,000 CAD converted = 0.011% (almost nothing)

Steps at Questrade

1. Open Questrade investment account (non-RRSP) with CAD balance
2. Buy DLR.TO at market price (e.g., 100,000 CAD ÷ 14 USD = ~7,143 shares)
3. Request journaling via online portal (self-service since January 2025)
4. Wait 3–5 business days
5. Sell DLR.U.TO at market price (you receive USD)
6. Transfer USD to bank account or RBC Bank USA

When to use? Limitations

Ideal for: $50,000–$500,000 CAD amounts, investors with Questrade account, short-term risk tolerance (3–5 day wait), non-registered or TFSA accounts

Not ideal for: urgent need (3–5 day wait), very small amounts < $5,000 CAD (cost ratio too high), RRSP accounts (complex tax implications)

Risks and considerations

Exchange rate risk during journaling: DLR.TO vs DLR.U.TO price may vary slightly (rare, spread ~0.01%). Usually not material.

Tax implication: Selling DLR.TO or DLR.U.TO can trigger a capital gain if price has risen. Not an issue for real estate CAD → USD transfer, but verify with accountant if gains are material.