RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
In the sea of forex trade companies, TMGM stands out as an excellent example of what a legit and regulated forex company has to offer. Let’s take a look.
TMGM is a forex company that trades in forex, shares, indices, precious metals, energies, and futures and offers 2 accounts, Edge and Classic, each one of them accompanied by a demo account. If you look at the screenshot below which shows the account feature comparison, you will notice that the differences between both accounts are minimal and consist of different spreads and commissions per lot. We’ll discuss these differences further down in this review.
It is very easy and straightforward registration if you want to open a demo account. For the live accounts, though, you need to provide a proof of ID and address.
TMGM regulation and safety of funds
According to the company’s website, TMGM is registered in Australia, Vanuatu, and New Zealand.
Upon searching Australian Securities and Investment Commission (ASIC) , the Vanuatu Financial Services Commission (VFSC), and the Financial Markets Authority (FMA), all three of our searches came up positive which is an excellent indicator about the legitimacy of the company. In addition to that, we find out that the name and the activities of this company are visible in the professional world of forex trade. This is a proof that supports our opinion that here we are dealing with a legit company.
If you are new in the forex trade world, you may be asking yourself the question – why spend so much time talking about this company registration and visibility? The answer is simple. Only with a registered and regulated forex company, you, as a trader, won’t have to take too many risks with your hard earned money.
Australian forex brokers need to pass strict audits and compliance procedures in order to be licensed. In addition to that, Australian brokers are obliged to keep traders’ account separately for protection of their funds and they must have at least 1 million AUD in registered capital. As you can see, there are a lot of prevention measures to avoid scam!
However, we need to mention one fact that is the downside of the forex companies registered in Australia: Clients of the Australian broker companies are not covered by a compensation scheme which serves to to compensate clients in case the broker company goes bankrupt. In contrast to that, brokerages registered and regulated in EU and UK protect clients with up to 20,000 EUR if regulated by CySEC and 85,000 GBP if regulated by FCA. This is worth considering when you are about to choose your brokerage. In the world of the risky forex trading, being protected from mishaps is something you should be looking for.
The Vanuatu Financial Services Commission (VFSC) may be an offshore FX license issuer, but it is perhaps one of the most reliable island-nation FX regulators out there, and this is saying a lot. One of the main requirements for all VFSC-licensed brokers is a stable minimum capital requirement of $50 000. Other than that the agency functions in much the same way as other regulators do, scrutinizing over its brokers on a daily basis and constantly looking to improve the local markets industry as well as its own provision of services.
New Zealand’s Financial Markets Authority is a top regulator and a force to be reckoned with. The commission has improved the FX industry in the nation, and has boosted its productivity by motivating more businesses to thrive. The main objective of the FMA is to ensure that all of its overseen companies act according to a set of rules and guidelines, requiring a very pedantic approach. Crucially, all brokers are required to provide a minimum operational capital of $1 million. This impressive sum guarantees that TMGM has enough capital to sustain its ethical and legit business practices.
TMGM Trading software
TMGM offers MetaTrader 4 and MetaTrader 5 trading platforms, in addition to iRESS web trading platform. As we already mentioned, if you are new in the forex trade world and you are lacking experience, you can open a demo account and practice until you are ready to start trading live. Both these platforms offer such an account.
On the screenshot below you can see what the interface of the MetaTrader 4 demo account looks like. On the left-hand side, you see the forex pairs with the bid and ask price. In the middle, you can see 4 different forex pairs and their buy and sell price at set times, as well as the positions and the fluctuations in set times. As you can see, for all forex pairs on the screen, the spread is very low, 1 pip. This is similar to the spread in the live accounts – from 0 pips in the Edge account and from 1 pip in the classic account.
If you look at the accounts information in the first screenshot, you will notice that the leverage for both accounts is rather high – 1:500. You need to be aware that other well-established jurisdictions, such as EU and US , have a cap on leverage 1:30 and 1:50 respectively, to prevent traders from taking high risks with their funds. Moreover, Australia recently lowered is maximum leverage cap to 1:30 – as part of new ASIC guidelines- the same as in Europe. And so, the 1:500 leverage is available to non-Australian users of the broker. On the other hand, New Zealander and Vanuatu-based users trading with TMGM have access to the 1:500 without any restrictions.
We would like to warn you especially if you are a newbie, that trading with such high leverage may lead you to losing your funds. It may look tempting, but be moderate and cautious in your trading undertakings and don’t give way to temptation.
In addition to the MT4/MT5 package, users are also encouraged to use the IRESS Viewpoint, a web trader that has all the functionalities that modern brokers have come to expect, and then some.
TMGM Deposit/Withdrawal and fees policy
The initial deposit for both accounts that TMGM has to offer is $100 and there are no funding fees. To fund their account, clients have a choice between Visa, MasterCard, bank transfer, Neteller, Skrill, UnionPay, Revolut, WISE, RMB, FasaPay, SticPay, and BrokerToBroker. As per the company’s policy and the regulation requirements, funds are kept in Client Trust Accounts in Australian banks, such as NAB and Westpac.
For withdrawals, clients can use the same methods as above, with zero withdrawal fees, although users might het fined with Intermediary Bank Charges. The minimum withdrawal amount is $100, and the processing time for withdrawal requests is 1 business day.
We like that the company does not have deposit and withdrawal fees and that the payment methods are made very clear on the company’s website. Also, another positive sign we’d like to mention is the lack of bonuses and/or non-deposit funds which is what scammer would do.