In the ever-evolving world of investing, change is the only constant. Enter Questrade's recent announcement: a $9.95 fee for currency journaling. For those who might not be up to speed, Norbert's Gambit is a clever trick that savvy investors use to convert CAD to USD (and vice versa) without paying the hefty fees typically associated with foreign exchange transactions. But with the new journaling cost, does this financial sleight of hand still deliver the goods, especially for small transfers?

Let's break it down. Traditionally, Norbert's Gambit involves buying a stock that trades on both Canadian and U.S. exchanges—like the beloved Royal Bank of Canada (RY) or the tech-savvy Shopify (SHOP)—in CAD, then journaling it over to the USD side of your account. Once the stock has been transferred, you simply sell it in USD. Voilà! You've converted your currency without the pesky fees that brokers often charge for FX conversions. But now, with that $9.95 fee per journal, the question arises: does it still make sense for smaller amounts?

For smaller transfers, say under $1,000, the scales start to tip. Many brokerages might offer FX spreads that can range anywhere from 1% to 2% or even higher, which can really eat into your profits. Let’s say you want to convert $500 CAD to USD. If you're facing a 2% spread, that’s $10 gone right off the bat. Add Questrade’s $9.95 fee, and you might think, "Wait, is this really worth it?" In this case, using Norbert’s Gambit for small amounts might not necessarily provide the savings you were hoping for. You could be better off just biting the bullet and using the broker's FX service.

Now, let’s talk about the big fish. If you're looking to transfer larger amounts, say $10,000 or more, that’s where Norbert's Gambit shines brighter than a glittering trophy on a game show stage. The FX spreads on larger amounts tend to decrease, and the cost of that $9.95 journaling fee becomes a mere drop in the ocean compared to the potential savings. With spreads often going down to around 0.5% for bigger transactions, the math starts to favor our clever little gambit.

In essence, for larger transfers, Norbert's Gambit still holds its crown as the reigning champion of cost-effective currency conversion. The $9.95 fee is a small price to pay for the savings you could see on those bigger transactions. But for the smaller amounts, you might want to consider your options and crunch the numbers carefully. Sometimes, sticking with the traditional route isn’t such a bad idea after all.

In the end, whether you’re a seasoned investor or just starting your financial journey, it’s always important to weigh your options. Just like deciding whether to binge-watch the latest series or catch up on the classics, knowing what works best for your situation is key. Keep your financial toolbox versatile, and you’ll always be ready to tackle whatever investment opportunity comes your way.