TMGM Review 2023

Trust

TMGM Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare each entity’s different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

Here is what we found out concerning TMGM’s three entities:

• Trademax Australia Limited is authorized and regulated by the Australian Services and Investments Commission (ASIC). ASIC ranks as a Tier-1 regulator on our system.
• Trademax Global Markets (NZ) Limited is authorized and regulated by the Financial Markets Authority (FMA) in New Zealand. FMA ranks as a Tier-2 regulator on our system.
• Trademax Global Limited is authorized and regulated by the Vanuatu Financial Services Commission (VFSC). The VFSC ranks as a Tier-3 regulator on our system.

We have summarized the most essential aspects of TMGM in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

A broker may operate multiple entities, and each one is likely to be regulated in a different jurisdiction. Because of certain discrepancies between national and international legislation, each entity is likely to be mandated by its regulator to adhere to different financial guidelines, thus entailing varying levels of protection. That is why it is vitally important for traders to be aware of the type of protection they can expect from each entity.

Here is a breakdown of the essential safety requirements to look for in a broker:

• Segregation of client funds. Keeping client funds in separate bank accounts from the ones used by the broker for its own corporate capital is essential for negating the risk of accounting errors. All of TMGM’s subsidiaries adhere to this requirement. Moreover, the broker works with some of the biggest banks in Australia and elsewhere.
• Negative balance protection. This policy ensures that traders’ losses cannot exceed their account balances. The only TMGM subsidiary providing negative balance protection is Trademax Australia Limited.
• Compensation scheme. A compensation scheme protects the client against the company’s liabilities and credit risk. In the unlikely event that the broker should default on its debt obligations and become insolvent, its clients can be compensated for any incurred losses by this scheme. Even though neither of the three regulators mandates this type of protection, TMGM should be commended for issuing professional indemnity insurance on its own initiative.
• Maximum leverage. On the one hand, the leverage multiplies the potential profits generated by winning trades. On the other, it has the same effect on losing positions. That is why capping the maximum leverage allowed is important for limiting the market exposure of inexperienced retail traders who are especially vulnerable to the risks of margin trading. In that regard, TMGM’s Australian entity ensures the greatest level of protection, with its maximum leverage for retail accounts set at 1:30.

Is TMGM Safe to Trade With?

TMGM is very safe to trade with, and its entity ensuring the greatest level of protection is Trademax Australia Limited. It is authorized by a Tier-1 regulator (ASIC) and provides negative balance protection and segregation of client funds in top-tier banks. And even though ASIC does not mandate a compensation scheme, TMGM has issued, on its own initiative, professional indemnity insurance of up to AUD 2.5 million. Moreover, its operations are periodically audited by an external party.

The broker’s overseas subsidiaries – Trademax Global Markets (NZ) Limited and Trademax Global Limited – are authorized by less stringent regulators, but they, too, entail good overall protection. Their only drawback is that they do not provide negative balance protection. Nevertheless, this is not to the detriment of the overall safety level. The Vanuatu-based entity, for instance, is a member of The Financial Commission. You can read more about that here.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

TMGM was founded nearly a decade ago, in 2013, and has worked continuously to expand its operations globally and improve its services. The company currently employs north of 200 people and has multiple offices in Australia and globally.

TMGM’s website is highly detailed and transparent. Traders wanting to know more about the broker’s services and conditions – for instance, concerning its best execution policy – can check out its lengthy Legal Docs section. TMGM is also fairly straightforward about its fees, and potential clients can examine its live spread rates here.

In summary, our findings indicate that TMGM can be regarded as having a good level of trust and stability due to the following factors:

• TMGM is multi-regulated by at least one top authority.
• It provides multilayered protections even when not mandated to do so by a regulator.
• The broker is fairly transparent.

Fees

TMGM Trading Fees

TMGM’s Spreads

We tested TMGM’s spreads during the most actively traded times – the London open at 8 AM GMT and just after the U.S. open at 2:45 PM GMT. The test was conducted on 19 December 2022.

TMGM’s Classic account has floating spreads starting from 1.0 pips. Except for indices, instruments from other asset classes generally have spreads below the industry average. Regarding indices, it is also worth pointing out that the spreads on the Dow Jones and DAX tend to increase at times when the local markets are closed. Traders in Australia and elsewhere should be mindful of the impact of different time zones on trading activity.

TMGM’s Swap Rates

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

Swap rates may either be to the advantage or disadvantage of a trader, depending on the underlying volatility levels. They change in size and direction over time, so traders – especially high-volume traders – should monitor them periodically.

TMGM’s Commissions

While there are no commissions on a Classic account, TMGM charges a $7 round turn commission per lot on its Edge account. This means traders have to pay $3.5 for opening a position and $3.5 for closing it. This commission is standard for the industry as a whole.

TMGM’s Non-Trading Fees

TMGM does not charge deposits or withdrawals, however, its maintenance fee is quite high. The broker charges dormant accounts with a balance below $500, on which no activity has been registered for a period of 6 months, a maintenance fee of $30.

Are TMGM’s Fees Competitive?

TMGM’s fees are very competitive across the board. With commission-free trading allowed and floating spreads starting from 1.0 pips, the Classic account caters to the needs of high-frequency traders. Accordingly, the Edge account type, with its fixed commissions and raw spreads starting from 0.0 pips, is better suited for high-volume traders.

Platforms and Tools

MetaTrader 4 has pretty much set the standard for what a trading platform is supposed to look like. But over the years, newer and more advanced platforms have been developed, making MT4 look outdated. Despite its rugged design, however, it delivers on practicality. MT4 has a decent amount of trading indicators and drawing tools, allowing for a detailed study of price action behavior from multiple angles.

The mobile app version of MT4 retains the same level of efficiency, for the most part, though its layout is even more simplistic and crude. The mobile app is less suitable for conducting thorough technical analyses and is better fitted to afford traders quick and easy access to the markets on the go.

TMGM does not accommodate copy trading, though Expert Advisors (EAs) – used for automated trading – are available on all account types. TMGM also incorporates HUBx, which is a tool that allows fund managers to manage their clients’ accounts and risk allocations more easily and efficiently.

TMGM’s Desktop MT4 Platform

General Ease of Use

The biggest advantage of MT4 is the simplicity of its design. The charts are positioned in the middle of the screen, account info can be found at the bottom, the watch lists and other trading options are positioned on the left, and the settings menu can be found on the above panel.

Charts

The chart is arguably the most important component of every platform. It is where price action is illustrated, which is why it is so vitally important for a chart to be clear, concise, and informative. The level of sophistication of the chart plays a significant role in shaping traders’ decisions.

We have summarized the most important features of a chart below:

• Trading indicators. MT4 consists of 30 trading indicators, such as trend-based and volume-based indicators and oscillators. These are used to gauge underlying market sentiment and determine key support and resistance levels.
• Drawing tools. The platform incorporates 19 distinct drawing tools, like trend lines, channels, Fibonacci retracement levels, and others. These are used to determine the general market direction, and forecast potential breakouts or breakdowns from an established trend.
• Traders can choose from 9 different timeframes – ranging from 1 minute to 1 month. Though the diversity is not great, it allows different types of traders to exploit various opportunities on the market and examine price action behavior from multiple angles.
• Chart types. There are only 3 chart types on MT4. Price action can be represented either as a line, using bars, or candlesticks.

Orders

And here is a breakdown of the three major order types available on MT4:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

TMGM’s Mobile MT4 App

The biggest advantage of a trading app is that it allows traders to stay connected to their accounts and the markets regardless of where they are. This is invaluable when they have to make snap adjustments to their running positions. However, the mobile app version of MT4 looks even clunkier, and its rugged layout becomes even more apparent when it’s run on a smaller-screened device.

General Ease of Use

On the one hand, navigating the app is even easier because its design is even more barebone; it contains only several sections – a watchlist, a charts and orders screen, a news section, and the settings menu. On the other hand, the app looks cramped due to a lack of space. It’s thus unsuitable for conducting complex technical analyses.

Charts

MT4’s mobile app consists of the following features:

• Trading indicators. The app incorporates 30 trading indicators. These can be categorized as trend-based, range-based, volume-based, and oscillators. It is extremely easy for the chart to get cramped with each subsequently added indicator.
• Drawing tools. There are 21 drawing tools, such as trend lines and channels. The above-mentioned problem regarding low resolution is most pronounced when applying drawing tools to a chart on a small-screened device.
• There are 9 different timeframes ranging from 1 minute to 1 month.
• Chart types. Once again, there are only 3 chart settings. Price action can be represented as a line, bars, and candlesticks.

Orders

Here is a breakdown of the different order types that can be executed through the app:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets actually filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price.

Tradable Instruments

TMGM offers a decent amount of leveraged products (CFDs), affording traders access to multiple markets. The broker has an above-average number of higher-risk assets like indices and cryptocurrencies, which benefits high-volatility traders. However, there is a noticeable shortage of lower-risk securities such as government treasuries.

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With TMGM?

Here is a breakdown of the tradable instruments currently available on a Classic TMGM account:

• 56 Currency Pairs
  • Majors, Minors, Exotic
• 5 Commodities
  • Metals and Energy
• 49 CFD Shares (10,000+ on IRESS)
  • S., Australia, Honk Kong
• 20 Indices
  • S., Europe, Asia
• 20 Cryptocurrencies
  • Majors and Minors

Broken down by asset class and compared to the broader industry, TMGM offers an average number of FX pairs, commodities, CFD shares, and cryptocurrencies; and an above-average number of indices. It is important to point out that the 49 CFD shares are only of American companies. This has certain implications for traders in Australia due to the significant discrepancy between the Asian trading session and the U.S. market open.

Customer Support

For general queries regarding TMGM’s accounts, services, registration, funding, or others, website visitors can turn to the dedicated FAQ section. And for more specific questions, they can either write or call the support team which usually responds swiftly and in detail.

TMGM’s Customer Support Test

When we test a broker’s customer support team, we evaluate the agents’ knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

We contacted TMGM on 20 December 2022 via live chat, available at the bottom-right corner of the main page. We wanted to inquire about TMGM’s professional indemnity insurance. An agent connected very quickly, and her answers were well-informed and helpful.

Deposit and Withdrawal

TMGM Deposit Methods

*The time it takes the broker to process a transaction once it has been received

TMGM Withdrawal Methods

*The time it takes the broker to process a transaction request

**Third-party banking fees may apply

Payments are processed relatively quickly and without handling fees, though third-party banking fees may apply. It is also worth pointing out that the broker has minimum transaction requirements for both deposits and withdrawals.

Account Types and Terms

TMGM’s retail account types are not only quite accessible, but they also offer excellent overall service at low costs. The broker provides deep liquidity, which accommodates precise order execution, and allows traders to exert great control over their positions. For instance, there is no minimum distance for stop-loss orders, meaning traders can apply extremely tight risk management.

Why is Choosing the Right Account Type Important?

Some traders are aggressive, while others are more conservative by nature. They have different styles, goals, and needs, and there is no such thing as a one-size-fits-all type of trading account to satisfy all. Instead, traders should look for accounts that match their specific styles.

For instance, a strategy requiring frequent getting in and out of trades will be executed more efficiently on an account that affords commission-free trading. Accordingly, traders who prefer executing sizable orders that last for longer should better look for accounts with raw spreads.

What Account Types Does TMGM Offer?

*If no trades are placed in a month, fees will be charged

**Waived if 10 trades are placed each month

The two retail accounts have low minimum deposit requirements ($100), making them quite affordable to most traders.TMGM also affords a wide selection of base currencies, meaning that traders can choose one based on the types of instruments they plan to trade the most. For instance, it makes sense to select AUD if you plan to trade Australian indices, EUR for some major currency pairs, or USD for American stocks to reduce your conversion charges.

The Classic account affords commission-free trading and has floating spreads starting from 1.0 pips, which is why it is suited for high-frequency traders. Accordingly, the Edge account has raw spreads starting from 0.0 pips and a $7 round turn commission. It is tailored to serve the needs of high-volume traders. The IRESS accounts, in turn, have much higher deposit requirements but offer access to 10,000+ shares and a superior platform.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

TMGM Account Opening Process

We have listed the steps necessary to open a trading account with TMGM below:

• Step 1. Click the ‘Open An Account’ button found on a banner at the bottom of the main page.
• Step 2. Fill in your personal details, including your name, country of residence, and email address.
• Step 3. Click the conformational link that is sent to your email. Log in to the client portal and resume the registration process.
• Step 4. Choose an account type and its parameters, such as your preferred leverage and password.
• Step 5. Fill in your financial details and complete a suitability test – a questionnaire designed to test your trading knowledge.
• Step 6. Verify your account by uploading a copy of a National ID. You can use your passport, driver’s license, or Australian Medicare Card.

Why is a Demo Account Important?

Demo accounts serve a twofold purpose – introducing traders to a broker’s services and allowing them to tweak their strategies in a risk-free environment. The market is continually evolving, and its underlying conditions are never static, which is why demo accounts are such indispensable tools in the arsenal of every trader.

TMGM Supported Countries

TMGM is not directed at citizens of Indonesia and the United States or any other jurisdiction where local laws prohibit the use of such financial services.

Research

TMGM’s clients, both beginners and advanced, can benefit from the broker’s systematic research content, which underscores both currently developing trading opportunities and broader market trends. This is important because even the best traders cannot keep track of everything that is transpiring on the market, which is why having your daily breakdown can be so helpful.

Research Tools

Here is a rundown of TMGM’s different types of research content:

• Economic calendar. The economic calendar is the backbone of research content. It informs traders of upcoming market events with significant importance. Such events, like major economic releases, usually create interesting trading set-ups.
• News section. Trading Central’s ‘Market Buzz’ feature serves a twofold purpose. It gauges the underlying market sentiment on instruments from various asset classes and provides a live stream of currently unfolding news.
• Market forecasts. Available through TMGM’s blog, the broker’s in-house forecasts provide a broad overview of general market trends. The technical and fundamental aspects of the forecasts are informative, though this type of content would be better if it were supported by charts.
• Trading ideas. Trading Central’s trading ideas underscore potential set-ups on a wide range of instruments by continuously monitoring price action developments. The ideas are supported by charts illustrating key support and resistance levels and price targets.

Education

TMGM’s trading course examines some essential topics pertaining to technical analysis, such as how to utilize the most popular trading indicators and strategies. The broker’s YouTube channel contains several penetrating webinars on a range of important topics. It also has 6 ‘how-to’ videos on general topics, such as how to open an account with TMGM. 

The Bottom Line

TMGM ranks among the best brokers in Australia, with steadily increasing global exposure. The multi-regulated company has access to a deep liquidity pool ensuring fast and precise order execution. But it’s not only TMGM’s partnerships with other prominent financial institutions that make it such a leader in the derivatives industry.

The broker has very low fees and competitive trading conditions, matched only by its diverse account types and probing research content. TMGM incorporates the renowned MetaTrader 4 (MT4) platform – soon also to include its successor (MT5) – and the seamless IRESS platform, which is tailored for professional stock traders.

And even though TMGM is, overall, a well-balanced broker, there is still room for improvement. The variety of tradable instruments – particularly from some asset classes, such as CFD shares of Australian companies – could be expanded further. The same applies to the scope of its educational content. 

TMGM, as a whole, is a reliable broker with licenses by trusted regulators in Australia and elsewhere and services catering to the needs of both beginners and advanced traders alike.

FAQ