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Foreign Exchange: Spot Trades, Forward Contracts and Multi-Currency Management on TD Business Central

FX Trading Snapshot

TD Business Central supports foreign exchange trading in over 30 currencies. Execute spot trades for immediate conversion or book forward contracts to lock rates up to 12 months out. CAD/USD spot trades settle T+1. Most other pairs settle T+2. Minimum spot trade is $5,000 CAD equivalent. Forward contract minimum is $10,000 CAD equivalent. Rates are competitive and tied to interbank pricing. All trades settle directly into your multi-currency TD Business Central accounts. Over $12 billion in FX volume flows through the platform annually.

Currency risk does not wait. A 3% swing in CAD/USD over a quarter can wipe out the margin on a million-dollar import contract. TD Business Central foreign exchange services give your treasury team the tools to convert, hedge and manage multi-currency exposure directly from the banking platform — no separate FX dealer required.

Execute an FX Trade View Account Balances
TD Business Central foreign exchange trading interface showing live CAD USD rate quote with spot and forward contract options and settlement details

Spot FX Trades for Immediate Currency Conversion

Convert currencies at live market rates. Settlement in 1-2 business days. Same-day for CAD/USD before 2:00 PM ET.

Spot trades are the most straightforward FX transaction. You need USD to pay an American supplier. You sell CAD, buy USD at the current market rate and the funds land in your USD account within 1-2 business days. The rate is locked the moment you confirm the trade. No surprises.

TD Business Central displays live indicative rates for all supported currency pairs. When you are ready to trade, request a firm quote. The rate holds for 15 seconds — enough time to review and confirm. For CAD/USD trades executed before 2:00 PM ET, same-day settlement is available, meaning the USD is in your account by end of business.

Competitive pricing is built into the platform. Rates are derived from interbank market levels with a transparent spread. Higher-volume clients receive tighter spreads automatically based on their rolling 90-day FX volume. Businesses trading more than $1 million monthly typically see spreads 30-50% narrower than standard retail FX rates.

The Bank of Canada daily exchange rates serve as a widely referenced benchmark. TD Business Central's rates are competitive against these published benchmarks, and trade confirmations include the Bank of Canada noon rate for comparison.

Forward Contracts for Future Obligations

When you know you will need foreign currency on a specific future date, a forward contract locks the rate today. Pay a USD invoice due in 90 days? Book a 90-day forward and know exactly how many CAD that invoice will cost. The rate is fixed regardless of how the market moves between now and settlement.

Forward contracts are available from 1 week to 12 months. Common use cases include scheduled supplier payments, lease obligations denominated in foreign currency, capital equipment purchases and repatriation of foreign subsidiary earnings. Each contract specifies the currency pair, amount, rate and settlement date.

For businesses with ongoing FX exposure, rolling forward programs automatically renew maturing contracts at current market rates. This creates a continuous hedge without manual rebooking. Your TD commercial banking FX advisor can structure a program that matches your cash flow forecast and risk tolerance, covering anywhere from 25% to 100% of projected exposure.

Forward contract accounting is straightforward. TD Business Central provides mark-to-market valuations on outstanding forwards for your financial reporting. This supports IFRS and ASPE hedge accounting requirements, simplifying the work your auditors need to do at quarter-end and year-end.

Supported Currencies and Settlement Times

Over 30 currencies available for spot and forward trading. Major pairs settle fastest.

Currency Code Spot Settlement Forward Available Same-Day Option
US Dollar USD T+1 Yes — up to 12 months Yes (before 2:00 PM ET)
Euro EUR T+2 Yes — up to 12 months No
British Pound GBP T+2 Yes — up to 12 months No
Japanese Yen JPY T+2 Yes — up to 12 months No
Swiss Franc CHF T+2 Yes — up to 12 months No
Australian Dollar AUD T+2 Yes — up to 12 months No
Hong Kong Dollar HKD T+2 Yes — up to 6 months No
Singapore Dollar SGD T+2 Yes — up to 6 months No
Mexican Peso MXN T+2 Yes — up to 6 months No
Chinese Yuan (Offshore) CNH T+2 Yes — up to 3 months No

Additional currencies including SEK, NOK, DKK, NZD, ZAR, INR, KRW, TWD, THB, BRL, CZK, PLN, HUF, TRY, ILS, AED, SAR and others are available. Contact your FX advisor for the complete list and settlement details.

Competitive Rates and Transparent Pricing

Rates derived from interbank levels. Volume-based spread tiers. No hidden fees.

How FX Rates Are Determined

TD Business Central FX rates are based on real-time interbank market levels. The platform adds a transparent spread that varies by currency pair and your trading volume tier. Major pairs like CAD/USD carry the tightest spreads. Exotic pairs have wider spreads reflecting lower market liquidity and higher settlement risk.

The Bank of Canada publishes daily exchange rates based on a methodology that surveys multiple market participants. TD Business Central trade confirmations include the Bank of Canada noon rate alongside your executed rate, providing a clear benchmark for comparison. This transparency lets your treasury team verify they are receiving competitive pricing on every trade.

Volume matters. Businesses with rolling 90-day FX volumes above $500,000 automatically qualify for tighter spreads. Above $5 million, you receive preferred pricing. Above $25 million, your TD FX advisor provides direct-market access pricing with minimal spread. The tier adjustment is automatic — no renegotiation required.

Multi-Currency Account Management

Hold balances in multiple currencies simultaneously. Instead of converting to CAD every time you receive a USD payment, park the funds in your USD account and use them when you need to pay a USD obligation. This natural hedging approach eliminates unnecessary conversion costs and reduces your overall FX volume.

TD Business Central supports multi-currency accounts in all major currencies. Each account appears in your account summary with balances shown in both the native currency and CAD equivalent at the current mid-market rate. Set up balance alerts on foreign currency accounts to monitor positions and trigger conversions when rates hit your target level.

For businesses importing from multiple countries, maintaining currency accounts in USD, EUR and GBP can reduce annual FX costs by 15-25% compared to converting everything through a single CAD account. The savings compound with transaction volume. A company paying $200,000 monthly to European suppliers saves an estimated $6,000-10,000 annually by maintaining a dedicated EUR account and timing conversions strategically.

Related Business Banking Services

Integrate FX trading with these TD Business Central tools for complete international payment management.

Account Summary

View multi-currency account balances in real time with CAD equivalent calculations. Open account summary.

Payroll Services

Pay international employees in their local currency using FX-converted payroll funding. Manage payroll.

Deposit Funds

Deposit foreign-currency cheques and track clearing through your multi-currency accounts. Deposit funds.

Frequently Asked Questions About Foreign Exchange

Yes. TD Business Central offers forward contracts that let you lock in today's exchange rate for settlement on a future date, typically 1 week to 12 months out. Forward contracts eliminate currency risk on known future payments such as supplier invoices, lease payments or capital expenditures denominated in foreign currencies. The rate is fixed at the time of booking regardless of market movement.

The minimum spot trade amount is CAD $5,000 or equivalent. Forward contracts have a minimum of CAD $10,000 or equivalent. There is no maximum limit. Trades above CAD $1,000,000 may receive enhanced pricing through your commercial banking advisor. Smaller currency conversions can be handled through the standard multi-currency account conversion feature at retail rates.

TD Business Central supports spot and forward trading in over 30 currencies including USD, EUR, GBP, JPY, AUD, CHF, HKD, SGD, MXN, CNH and many more. The full currency list is available in the FX trading module. Major currency pairs settle T+1 or T+2. Exotic currencies may require T+3 settlement. All trades settle into your designated multi-currency accounts.

Forward contracts are the primary hedging instrument on TD Business Central. Book forwards for specific amounts and dates to match known future obligations. Rolling forward programs automatically renew maturing contracts. Natural hedging through multi-currency accounts reduces the need for formal hedging on matched inflows and outflows. Your TD FX advisor can structure a comprehensive hedging program based on your exposure profile.

Spot FX trades settle T+1 for CAD/USD and T+2 for most other pairs. Same-day settlement is available for CAD/USD trades executed before 2:00 PM ET. Forward contracts settle on the agreed future date. Settlement debits your source currency account and credits the target currency account. Both accounts must be linked on your TD Business Central profile before executing a trade.

Manage Currency Risk With Confidence

TD Business Central foreign exchange services give your treasury team competitive rates, forward hedging and integrated multi-currency management. Contact a commercial banking FX advisor to optimize your international payment strategy.

Speak to an FX Advisor