Terms & Conditions

Terms & Conditions


All transactions completed by Mercantile Exchange Corporation (“Mercantile”) on behalf of the Corporate Entity or Individual (“CLIENT”) will be undertaken on the following terms and conditions:


  1. Mercantile is a foreign exchange trading company providing its CLIENTs with foreign currency exchange services and does not purport to be, nor is it, a securities dealer, broker, portfolio manager, financial or investment advisor, commodities broker or the like. Mercantile does not act as an advisor in regard to your foreign exchange transactions and you agree that neither Mercantile, its directors, officers or employees shall be held responsible or liable for any loss whatsoever and howsoever arising from any transactions entered on behalf of the CLIENT.

2. All orders or instructions received from CLIENT by Mercantile will be filled or acted upon on a best efforts basis only. There is no guarantee by Mercantile or any certainty that an order can or will be filled or that instructions provided can or will be acted upon. Mercantile is hereby authorized by the CLIENT to accept or rely on all orders and instructions, whether oral or written, and from any person Mercantile reasonably believes to be your authorized representative or yourself (in the case of an INDIVIDUAL). An audio record of all oral orders and instructions will be taken and maintained by Mercantile and you hereby expressly authorize and agree to the taking and maintaining of such records. The person signing Foreign Exchange Authorization or Confirmation(s) or Delivery Log(s) or Courier Way Bill(s) on behalf of the CLIENT is expressly authorized to do so for and on behalf of the CLIENT.

3. Foreign exchange transactions are entered into at the request of the CLIENT, and on the basis of your desire to protect the CLIENT against fluctuations in currency rates by fixing your rate of exchange in advance of the date or dates when the CLIENT is required to make or accept payment, and not for speculative purposes. Currencies bought or sold on a spot basis are settled within two business days, unless otherwise agreed to. Forward contracts are purchases or sale of currencies for settlement beyond  business days.

Forward Contracts

4. With respect to forward exchange contracts, the CLIENT agrees to provide Mercantile with an initial collateral deposit based on the Canadian Dollar or US Dollar market value of the forward contract, as the case may be.  The initial deposit required for contracts of up to 90 days is a minimum of 5% of the value of the contract.  The initial deposit required for a contract over 90 days is a minimum of 10% of the value of a contract.

5. Your open unmatured contract will be revalued from time to time in relation to the prevailing market rates.  The frequency of revaluation and rates applied are in Mercantile’s sole and absolute discretion.  If the re-valued spot value of your open position results in the amount of the deposit declining below the initial deposit rate, Mercantile may demand an additional collateral deposit.

Forward Contract Deposit(s)

6. For contracts with up to 3 months remaining to settlement , 5% of the booked value of the contract is required.

Time(days) Deposit Required
0-90 5%

6.1. For contracts over 3 months remaining to settlement, 10% of the booked value of the contract is required.

Time(days) Deposit Required
91-365 10%

Note:  Should the outstanding value of the Contract change due to market conditions, Mercantile may require an additional 5% or 10% deposit depending on the term remaining to maturity

7. Deposit required will be based on the remaining time of the unmatured contract.  Additional funds maybe required of The CLIENT to keep the deposit amount at either 5 or 10% respectively.

8. The CLIENT will be required to pay MERCANTILE to cover net Out-The-Money (“OTM”) risk due to unfavorable market fluctuations over and above 3%- 5% of outstanding position. Current market position of all booked forward contracts will be monitored with risk exposure top up payments in increments of 5% of outstanding position.

We will notify the CLIENT when margin deposits become payable. Payment must be received within 2 business days of notice being sent.

If any margin deposit is not received within two business days of notice being sent, MERCANTILE reserves the right to cancel any or all outstanding contracts and any collateral or deposits on hand may be exercised or retained by MERCANTILE to cover any outstanding OTM position. The CLIENT is responsible for any shortfall if deposits or collateral are insufficient to fully cover the OTM

9. Any amount remaining on deposit at settlement date will be returned to the CLIENT.  In providing deposit monies to Mercantile, the CLIENT acknowledges and agrees that such monies:

9.1 may be used by Mercantile in the ordinary course of Mercantile’s business (including, but not limited to any banking agreements):

9.2 will not be maintained by Mercantile in a segregated account in the CLIENT’s favour; and

9.3 shall not be subject to a trust, deemed or otherwise, in the CLIENT’s favour, and that the CLIENT’s right to have the amount of the margin payment applied or credited in the CLIENT’s favour on the settlement date represents an unsecured claim against Mercantile and does not represent a claim, by way of trust or otherwise, to the margin payment or proceeds through or to any assets of or under the control of Mercantile.

10. Mercantile may provide the CLIENT with an option to settle a Forward Contract prior to the Settlement Date by specifying an Option Date in the applicable Trade Confirmation, in which event Customer may settle the applicable Forward Contract, in full or in part subject to approval by Mercantile, at any time on or after the Option Date (but only prior to and by the latest on the Settlement Date) on the giving of one (1) Business Day’s Notice to Mercantile.


For Corporate Entities only:

11. For contracts guaranteed by Export Development Corporation (“EDC”) or Mercantile, the terms of this section apply where relevant and appropriate, to be read in conjunction with the Customer Agreement for EDC or Mercantile-guaranteed forward contracts as applicable.

12. Mercantile’s liability under this agreement for any breach by it shall be limited to the currency value of the transaction as for the order date only. In no event shall Mercantile be liable to any person(s) for general, special, additional or consequential damages as a result of any breach or negligence by Mercantile. Unless otherwise expressly provided for herein, Mercantile shall not be liable for any loss whatsoever or howsoever arising, without limiting the generality of the foregoing, including losses due directly or indirectly from any default or delay caused by wars, labour disputes, acts of God, governmental acts, natural catastrophes, acts or omissions of Mercantile and/or third-party financial institutions, equipment failures, public emergencies, currency market conditions or any other circumstances beyond Mercantile’s direct control.

13. Mercantile pays all fees relating to processing of outgoing payments (wires, drafts and cheques) at point of origination only. Mercantile has neither any control of fees deducted by intermediary and beneficiary banks nor the length of time taken by intermediary and beneficiary banks to process payments and as such will not be responsible for any losses.

14.The CLIENT agrees to notify Mercantile in writing, within 24 hours of delivery, of any discrepancy noted on the foreign exchange confirmation, wire confirmation, draft, cheque or any other instruments / documents relating to the transaction. While Mercantile will ensure best efforts to correct errors committed by Mercantile or the CLIENT, provided such errors are communicated in writing to Mercantile within the said 24-hour period, Mercantile assumes no liability whatsoever for such errors on or after the expiration of the 24 hour notice period.

15. In the event that you seek recourse or reimbursement for the transaction through your financial institution, you shall notify Mercantile in writing at least 24 hours prior to delivering a claim for such recourse or reimbursement to the CLIENT’s financial institution.

16. Mercantile is entitled to accept all instructions and direction from the CLIENT in good faith.  Mercantile is entitled to act upon the instructions of persons purporting to be the CLIENT. Mercantile is not liable for any losses the CLIENT may suffer as a result of the misconduct of any person purporting to act on the CLIENT’s behalf.

17. The CLIENT understands that Mercantile will only accept guaranteed funds for settlement of any and all transactions.

18. The CLIENT agrees that Mercantile reserves the right from time to time to use any third party provider(s) to validate information the CLIENT has provided on any application(s) as part of the identification, credit and compliance process as required by Federal legislation and/or Provincial legislation.

For all Mercantile Client’s:

In compliance with the Personal Information Protection and Electronic Documents Act (PIPEDA) and to comply with the Federal Proceeds of Crime (Anti Money Laundering) and Terrorist Financing Act and regulations, including internal risk assessment;

19. We may collect Information including: (specifiy company, and any and all individuals that are currently with the company or may be added in the future, not limited to:

19.1.1 Owners,

19.1.2 Directors

19.1.3 Employees

19.1.4 Officers

19.1.5 Corporate details

19.1.6 Corporate activities

19.1.7 Other items to be listed::

19.2 We would collect the following details:

19.2.1 details about you
19.2.2 your background,
19.2.3 your name,
contact information,
date of birth
19.2.4 and other identification
19.2.5 records that reflect your dealings with and through us
19.2.6 details about your browsing activities, your browser or mobile device
19.2.7 your preferences and activities.

20. This Information may be collected from you and from sources within or outside Mercantile, including from:

20.1 government agencies
20.2 Registries
20.3 law enforcement authorities


20.4 public records
20.5 credit reporting agencies
20.6 other financial or lending institutions
20.7 references or other information you have provided
20.8 persons authorized to act on your behalf under a power of attorney or other legal authority
20.9 your interactions with us, including in person, over the phone, at the ATM, on your mobile device or through email or the Internet
20.10 records that reflect your dealings with and through us

21. You authorize the collection of Information from these sources and, if applicable, you authorize these sources to give us the Information.

22. We will limit the collection and use of Information to what we require in order to serve you as our client and to administer our business, including to:

22.1 verify your identity
22.1 evaluate and process your application, accounts, transactions and reports
22.1 provide you with ongoing service and information related to the products, accounts and services you hold with us
22.1 analyze your needs and activities to help us serve you better and develop new products and services
22.1 help protect you and us against fraud and error
22.1 help manage and assess our risks, operations and relationship with you
22.1 help us collect a debt or enforce an obligation owed to us by you
22.1 comply with applicable laws and requirements of regulators, including self-regulatory organizations.

Disclosing Your Information

23. We may disclose Information, including as follows:

23.1 with your consent

23.2 in response to a court order, search warrant or other demand or request, which we believe to be valid

23.3 to meet requests for information from regulators, including self-regulatory organizations of which we are a member or participant, or to satisfy legal and regulatory requirements applicable to us

23.4 to suppliers, agents and other organizations that perform services for you or for us, or on our behalf

23.5 to payment card networks in order to operate or administer the payment card system that supports the products, services or accounts you have with us (including for any products or services provided or made available by the payment card network as part of your product, services or accounts with us), or for any contests or other promotions they may make available to you

23.6 when we buy a business or sell all or part of our business or when considering those transactions

23.7 to help us collect a debt or enforce an obligation owed to us by you

23.8 where permitted by law

23.9 to provide foreign exchange products and services requested by the CLIENT;

23.10 to be able to contact a representative of the CLIENT by telephone, mail and/or electronic means;

Online Access

24. Upon registration, you will be able to obtain a Username and Password with unlimited or prescribed levels of authority in order to enable you and your authorized representatives to access the Trading Platform and use the Services. You accept these terms and conditions of use each time the Trading Platform is accessed by anybody using your username and Password. Mercantile will not check the identity of the user every time the username and Password are used. It is your responsibility to ensure the security of your username and Password. Mercantile will be entitled to assume that anybody who uses the username and Password has your full authority to do so and accepts no responsibility for misuse or unauthorized access, other than in circumstances where the use has been by employees of Mercantile or where you have notified Mercantile of termination in accordance with this Agreement.

25. You agree not to disclose the Password to any person and keep it separate from instructions about the Services. You agree to be responsible for all costs and charges, including fees and trade settlement costs, incurred through the use of the Password. If you become aware of any unauthorized use of the Password or if the Password is lost or stolen, you will notify Mercantile immediately by telephoning 1 800 268 2682.

26. You shall avoid selecting an obvious Password, such as a street address, date of birth or telephone number. You shall change the Password on a regular basis to reduce the potential for unauthorized use.

27. Once you have entered the Password into the Access Device, you agree not to leave the Access Device unattended until all Trade Requests are completed and you have terminated the Services connection through the Access Device.

28. The copyright in the Website and all associated material is the property of Mercantile or third parties from whom the material has been licensed. By accessing or using the Website, Mercantile grants you a limited license to view and otherwise access content on the Website, but you are not authorized to use such content or source code for any other purposes, including reverse engineering or copying that content or source code, unless otherwise specified. All other rights are reserved, and, except as outlined in this agreement or as otherwise permitted by any copyright legislation, no part of the Website and associated material may be reproduced or published in any form or by any means, electronic or mechanical, including photocopying, recording, or by information storage or retrieval system, without the prior written permission of Mercantile.

29. Links to other websites or references to products, services or publications other than those of Mercantile at its web site do not imply the endorsement or approval by Mercantile of such web sites or such products, services or publications.

30. You agree that Mercantile will not be liable for any loss or damage resulting from any cause over which Mercantile has no control including, but not limited to, acts or omissions or suppliers, failure of electronic or mechanical equipment or communication lines, telephone or other interconnect problems, unauthorized access, theft, power failure, labour disputes or government intervention. Subject to any conditions and warranties implied by legislation, Mercantile excludes liability for any delay, interruption or unavailability of the Trading Platform.

31. In no event will Mercantile be liable for any special, indirect, incidental or consequential damages, including, without limitation, lost revenues, lost profits or loss of prospective economic advantage resulting from the use of the Services or misuse of Mercantile’s web site even if advised of the possibility of such damages, or for any claim by another party.

32. Mercantile will use all reasonable efforts to provide access to the Trading Platform at all reasonable times, but cannot guarantee that such access will never be interrupted as a result of technical or other unforeseen problems. Mercantile reserves the right to suspend or terminate access to the Trading Platform at any time and without prior notice.

33. Mercantile employs secure encryption technology, but cannot guarantee that the Trading Platform or Mercantile’s website will always be free of viruses or bugs or that any communication is secure from interception by third parties.

34. You agree and acknowledge that Mercantile may modify or discontinue the Services or any part of them at any time. You also acknowledge that the Services may be periodically unavailable to allow for systems maintenance and updates.

updated: July 10, 2017