TMGM Review 2024

Trust

TMGM Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their 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.

This is what I discovered about the four entities operating under the TMGM trade name:

• Trademax Australia Limited is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 436416. We rate ASIC as a Tier-1 regulator.
• Trademax Global Markets (NZ) Limited is licensed and regulated by the Financial Markets Authority (FMA) in New Zealand under license number 569807. We rate the FMA as a Tier-1 regulator.
• Trademax Global Limited is licensed and regulated by the Vanuatu Financial Services Commission (VFSC) under license number 40356. We rate the VFSC as a Tier-3 regulator.
• Trademax Global Markets (International) Pty Ltd is licensed and regulated by the Financial Services Commission (FSC) in Mauritius under license number GB22201012. We rate the FSC as a Tier-3 regulator.

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?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All TMGM entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. Trademax Australia Limited and Trademax Global Markets (International) Pty Ltd provide negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. All TMGM entities have professional indemnity insurance.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with TMGM is 1:1000, available with its entity based in Vanuatu.

Is TMGM Safe to Trade With?

I assess TMGM as a fairly safe broker to trade with, especially its main Trademax Australia Limited entity that I have been reviewing. It is authorized by a Tier-1 regulator (ASIC), has issued professional indemnity insurance, and is periodically audited. All of this ensures top-line protection for retail and professional traders alike.

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.

I verified TMGM’s transparency by thoroughly reviewing its legal documents and comparing the trading fees listed on its website with those charged on its platform. My assessment confirmed that the fees matched, demonstrating the broker’s honesty in its fee structure.

I found all of TMGM’s vital information to be abundant, clearly written, and readily available. The broker does not use any misleading language or hidden warnings in its Client Agreement. I also discovered that TMGM operates on a ‘best execution’ basis, meaning it provides the best price quotes under prevailing market conditions.

In summary, my research indicates that TMGM can be regarded as having a very high level of trust and stability due to the following factors:

• Licensed by two Tier-1 regulators
• Has issued professional indemnity insurance on its own initiative
• Operates on a ‘best execution’ basis
• Participates in the Financial Commission

Fees

TMGM’s pricing is tighter than the industry average for FX Majors and other popular instruments. However, be aware that swap fees can sometimes be quite high. Platform fees are applicable for IRESS.

The broker does not charge for deposits and withdrawals.

TMGM’s Trading Fees

TMGM’s Spreads

I tested TMGM’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on the 9th of January 2024. The results are shown in the table below:

Broken down by asset class and compared to the broader industry, TMGM offers low spreads on currency pairs and share CFDs, low-to-average spreads on commodities, average-to-high spreads on indices, and high spreads on cryptocurrencies.

TMGM’s Commissions

TMGM’s Edge account type features a fixed round-turn commission of $7 per traded lot (100,000 units) applied to FX currency pairs and a $5 round-turn commission per lot applied to metals.

Please note that ‘round-turn’ means that half of the fixed rate is paid whenever an order is opened, and the other half is paid when the position is closed. I determined that TMGM’s commissions marginally exceed the industry average.

TMGM’s Swaps

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.

My tests indicate that TMGM’s swap charges are average-to-high compared to the industry average. The broker offers favorable conditions for using medium-to-longer-term trading strategies for some instruments.

TMGM’s Non-Trading Fees

TMGM imposes a monthly maintenance fee of $30 on dormant accounts. This fee applies to accounts with a balance below $500 that have shown no activity for six consecutive months. The fee will continue to be charged each month until either trading activity resumes or the account balance reaches $0.

Are TMGM’s Fees Competitive?

For the most part, I found TMGM’s fees to be competitive, depending on the type of instrument traded and the duration of the trade. The recorded spreads on FX pairs and share CFDs on an Edge account are especially low, however, there is a corresponding commission that marginally exceeds the industry average.

The broker’s pricing structure is primarily designed to support high-frequency trading. However, it also accommodates day and position trading strategies. Traders should be aware of fluctuating swap rates, as these can sometimes become significantly high.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees on TMGM’s two retail account types. It illustrates the spreads and commissions I have recorded on the EUR/USD pair for each account type. It also shows the typical costs for ECN and STP accounts in the industry at large. The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My testing shows that TMGM’s Edge account provides slightly better conditions than most ECN accounts and significantly more advantageous conditions than most STP accounts, including TMGM’s own Classic account. The Classic account, true to its name, aligns with the costs typical of an STP account, especially in terms of spreads and commissions.

Platforms and Tools

MetaTrader 5 has many essential features, such as one-click trading, an alarm setting option, and a depth of markets tool. Because of its simplistic and straightforward design, I would say that MT5 is a good stepping stone for beginner traders wishing to learn essential charting skills on a platform with a learning curve.

MT5 accommodates automated trading via its Expert Advisors (EAs). I determined that TMGM is a good choice for those interested in algo-trading because of several factors. Its above-mentioned fast order execution coupled with free VPS hosting (for clients with a monthly traded volume of at least 7 lots), and an AI-powered research tool Acuity.

TMGM also offers an advanced version of copy trading by incorporating the HUBx tool. It is used by fund managers and their clients. The standout feature of HUBx is its enhanced risk allocation capabilities. For more information about the tool, please click here.

Among all the analytical tools and chart configurations that it permits, the major drawback of MetaTrader 5 is its ruggedness. The platform has a rather outdated feel to it, especially when compared to newer and sleeker software. Carrying out sophisticated technical analysis is hampered by its cumbersome charts, which makes it more difficult for chart artists to explore price action behavior in depth. Nevertheless, MT5 facilitates fast and easy order execution.

Trading on the go is made possible with the mobile app version of MetaTrader.

TMGM’s Desktop MetaTrader 5 Platform

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the chart screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

I have broken down the available analytical tools and chart configurations below

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The problem with MetaTrader 5, in my opinion, is that applying 2 or more indicators to the chart obscures price action rather than contextualizing it. This is due to the ruggedness of the software design.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. One of the best things about MT5 is its wide range of timeframes, affording traders a multifaceted outlook on price action behavior.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• 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 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 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.

My Key Takeaways After Testing the MetaTrader 5 Platform

One of the best things about MT5 is its simplified order execution. However, its rugged design is not ideal for carrying out probing technical analysis.

As a chart artist, I have always preferred trading platforms with charts that allow me to scale price action up and down easily. But MT5 is not such a platform. I found its charting capabilities quite rigid and ineffective. The one thing that MT5 is quite suitable for is automated trading because it is not dependent on the execution of precise technical analysis.

TMGM’s MT5 Mobile App

TMGM’s MT5 mobile app affords traders quick and easy access to the market on the go. It is very useful for making snap adjustments to any open trades. The market is volatile and ever-changing, and staying on top of the latest developments is made easy with the mobile app version of MT5. You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor your positions’ development and make changes if needed.

Tradable Instruments

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. 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?

I have broken down the available instruments with TMGM below:

• 56 Currency Pairs
  Major, Minor, and Exotic
• 5 Commodities
  Metals and Energy
• 50 Share CFDs (10,000+ on IRESS)
  Financial, Retail, Tech, Other
• 20 Indices
  U.S., Europe, Asia, Australia
• 7 ETFs
  Asia, North America, South America
• 20 Cryptocurrencies
  Major and Minor

Compared to the industry average, TMGM offers an average amount of FX pairs and commodities and a high amount of share CFDs, indices, and cryptocurrencies.

My Key Takeaways After Exploring TMGM’s Tradable Instruments

Clients of TMGM are treated to a decent range of instruments. But even more importantly, TMGM’s assortment is diverse enough to accommodate the needs of both more risk-averse traders and those interested in more speculative trading. I consider TMGM’s instruments offering to be sufficient for consistent and balanced trading.

Customer Support

The easiest way to get in touch with TMGM is via live chat. You are automatically connected to a chatbot intended to help you describe the nature of your question. Before connecting to an agent, you have to state your name and email address and choose a preferred language.

Customer Support Test

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

I performed a live chat test with TMGM on January 9 at approximately 11:15 CET. The response from an agent was immediate. My query regarding TMGM’s commission policy for an Edge account was met with a swift and knowledgeable answer. The agent provided clear, direct responses and was very polite and helpful. Furthermore, she confidently addressed additional questions I posed, effectively demonstrating her expertise.

Deposit and Withdrawal

TMGM’s Deposit Methods

TMGM’s Withdrawal Method

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does TMGM Offer?

I have broken down the features of TMGM’s account types below:

The Classic account is generally geared towards beginners, whereas the Edge account is better suited for high-frequency trading. The stop-out level at 40% is pretty standard for the industry and ensures tight protection against adverse market volatility.

The broker allows all strategy types, including hedging, scalping, and the use of EAs. This gives traders the freedom to exploit a wide variety of opportunities. TMGM also does not have a minimum distance requirement between limit and stop orders, meaning that traders can practice tight risk management. They are free to place their stop-loss orders as close to the market price as they wish.

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 positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

TMGM’s Execution Model

TMGM utilizes market execution. The broker operates on an electronic communication network (ECN) basis without a dealing desk. Order requests are transmitted to the interbank level, where TMGM’s liquidity providers fill them. As long as there is enough liquidity in the market, all order requests will be filled at varying speeds.

TMGM’s Account Opening Process

The account creation process with TMGM is straightforward and quick. You can go at your own pace and be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click the ‘Sign Up’ button at the top-right corner of the main page.
• Step 2. Fill in your personal details, including your name, country of residence, and email address.
• Step 3. Confirm your email address and log in to the client portal.
• Step 4. Choose an account type and configure its parameters.
• Step 5. Fill in your financial details and complete a suitability test as part of the client categorization process.
• Step 6. Verify your account by uploading proof of ID and address.

Why is a Demo Account Important?

TMGM offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

TMGM’ Restricted Countries

Trademax Australia Limited’s services are directed solely towards Australian residents.

Research

Research Tools

I have broken down TMGM’s research content by type below:

Economic Calendar

The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.

Daily Market Breakdowns

Each article comprises a daily breakdown of one or two instruments and currently developing trading ideas. These contain a brief fundamental analysis and a trend analysis supported by a chart. The technical section may contain key support and resistance points, pivot points, and expected market direction. I appreciated the straight-to-the-point approach implemented by TMGM.

MarketBuzz

A tool used to gauge market sentiment and give the trader an idea of how other market participants are positioning themselves. This can give him an idea of the discrepancy between buying and selling pressure in the market.

Acuity

Acuity is an AI-powered tool that presents traders with sharp and actionable insights. Acuity combines real-time sentiment research, market alerts, AI research, and other features in one comprehensive tool.

Education

I have summarized TMGM’s key educational materials by type below:

• Forex Glossary. The ‘Trading Terminology’ feature is available from the website. It contains dozens of entries explaining some of the most fundamental trading terms and concepts.
• Basics of CFD Trading. 7 written articles covering rudimentary topics, such as the differences between CFD and Stock trading, how to use trend lines, an introductory scalping strategy for beginners, and more. Each article contains an in-depth explanation of the subject matter, usually supported with multiple images.
• Webinars. About a dozen past webinars are still available on the broker’s YouTube channel. Mostly technical-oriented, the bulk of these webinars cover topics such as trading strategies, automated trading, cryptocurrency trading, and others. Notably, no attention is paid to fundamental analysis or the psychology of trading.
• Platform Videos. There are also 18 how-to videos uploaded to TMGM’s YouTube channel explaining the different uses of the MetaTrader platform.

The Bottom Line

TMGM, a prominent Australian broker since 2013, is known for its robust regulation and commitment to client safety, offering professional indemnity insurance, a best execution policy, and membership in The Financial Commission.

TMGM offers the standard suite of MetaTrader 4 and 5 along with the IRESS platform for experienced stock traders.

Key strengths include fast order execution (under 30 milliseconds), low trading fees, and a diverse array of tools, including free VPS hosting and detailed research content. However, the broker’s educational resources are somewhat limited.

Overall, I concluded that TMGM caters to high-frequency traders. Long-term position trading is feasible, though it requires careful monitoring of changing swap rates.

FAQ