Is Trademax Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Trademax try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Trademax is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Trademax
Trademax (TMGM) is a CFD and Forex broker that has been operating since 2013. The company offers clients trading in five asset classes, including currency pairs, contracts for stocks, indices, energies and precious metals. Trademax has two offices, one in Australia (where the broker was founded) and the other in Vanuatu. Services are provided under the licenses of the Australian Securities and Investments Commission (ASIC) and Vanuatu Financial Services Commission (VFSC).
| 💰 Account currency: | USD, EUR, GBP, AUD, CAD, NZD |
|---|---|
| 🚀 Minimum deposit: | USD 100 |
| ⚖️ Leverage: | Up to 1:100 for energy CFDs, up to 1:400 for metal CFDs, up to 1:500 for other instruments |
| 💱 Spread: | From 1 pip (Variable Spreads Account), from 0.0 pips (Raw Spreads Account) |
| 🔧 Instruments: | Currency pairs (50), CFDs on shares (15,000), indices (15), metals (3), energy resources (2) |
| 💹 Margin Call / Stop Out: | 100%/40% |
Pros and cons of Trademax
👍 Advantages of trading with Trademax:
•15,000+ trading instruments.
•Spreads from 1.0 pips.
•HUBx copy trading service.
•3 trading terminals.
•Education for traders
👎 Disadvantages of Trademax:
•No MAM or PAMM accounts.
•You cannot access your account without verification.
•Support works 24/5.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Trademax Regulated? Broker’s license
Security (Protection for Investors)
The TMGM broker has two offices - a central office in Australia and an additional one in Vanuatu. The company operates under three licenses. This is Australia's license - ASIC AFSL # 436416, and this is the Vanuatu license - VFSC # 40356, FMA (569807).
👍 Advantages
- Client funds are segregated from TMGM and held in segregated bank accounts
- Negative balance protection is activated
- In case of violation by the broker of the obligations prescribed in the offer, the client can file a complaint with the regulator
👎 Disadvantages
- To open an account, you must provide detailed financial information
- Without verification, you cannot make a deposit or withdraw funds
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Trademax, which you can see below.
The Traders Union specialists analyzed trading and non-trading fees of the TMGM broker. Commissions differ depending on the type of trading account. The Variable Spreads Account is charged with a standard spread. The average spread for EUR/USD on Trademax is 1.1 pips. The Raw Spreads Account has spreads from 0.0 pips but provides a fixed commission. The commission is USD 7 per trade in both directions, which is equivalent to USD 3.5 per lot in one direction. There is also a commission for inactivity. Its size is USD 30 per month. It is charged after 6 months of no trades on the real account, and if the account has less than USD 500.
| Account type | Spread (minimum value) | Withdrawal commission |
| Variable Spreads Account | From $10 | No |
| Raw Spreads Account | From $7 | No |
Brokers that are similar to Trademax
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Trademax conditions with its closest competitors.
Comparison of Trademax with other Brokers
| Trademax | RoboForex | Pocket Option | Exness | FreshForex | Deriv | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, IRess |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
Deriv bot, Deriv MT5, Derivix, Deriv Trader, SmartTrader |
Min deposit |
$100 |
$10 |
$5 |
$10 |
No |
$5 |
Leverage |
From 1:100 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
1.00%% |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
$30 |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
Trademax (TMGM) is an ECN-based CFD broker offering services to clients from 150+ countries.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
Deriv is a broker for beginners and professional traders who prefer to make trades on their own, as well as use auxiliary programs for more efficient trading.
Conclusions
Trademax is a quite reliable broker for trading. Trademax operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.