Comparing TMGM Edge Vs Classic Account

You need to know, in Islamic finance, interest or riba is prohibited. Swap fees are essentially an interest payment charged on positions that are held open overnight in forex trading. Because of this, Muslim traders are not allowed to participate in conventional forex trading that involves paying or receiving interest. To cater to this, brokers like TMGM offer swap-free or Islamic accounts that do not charge or pay interest. Instead, they may charge an administration fee or adjust the price of the currency pair to compensate for the lost interest.

TMGM Classic's swap-free option works by removing any swap fees from the trades made by Muslim traders. This allows them to participate in the forex market without violating their religious beliefs. It's worth noting that not only Muslim traders can benefit from swap-free accounts. Traders who prefer to avoid swap fees for other reasons can also opt for this type of account.

To be noted, the swap-free option is not exclusive to Muslim traders, but it is designed to accommodate their religious beliefs. In Islamic finance, there is a prohibition on earning or paying interest, which is known as riba. This includes the concept of swap fees, which are charges incurred for holding a position overnight.

In conventional trading, swap fees are typically charged to reflect the difference in interest rates between the two currencies being traded. For example, if you buy a currency with a higher interest rate than the currency you are selling, you will earn a positive swap fee. Conversely, if you buy a currency with a lower interest rate, you will incur a negative swap fee.

For Muslim traders, the concept of paying or earning interest is not permissible under Islamic law. As a result, swap fees are considered haram, or forbidden. To accommodate Muslim traders, many brokers offer swap-free accounts, which allow traders to hold positions overnight without incurring any swap fees.

In practice, a swap-free account works by adjusting the price of the currency pair being traded to reflect the absence of swap fees. This means that the spread, or the difference between the buy and sell prices of a currency pair, may be slightly wider than in a conventional account. However, this difference is generally small and does not significantly impact trading performance.

At TMGM Classic, the swap-free option is available to all traders who wish to avoid swap fees, not just Muslim traders. The option is designed to provide greater flexibility for traders and accommodate a variety of trading styles and beliefs.

ECN stands for Electronic Communication Network, and it is a type of forex broker that provides direct access to interbank liquidity. ECN brokers typically offer very tight spreads, often starting from 0.0 pips, because they aggregate prices from multiple liquidity providers and offer the best available bid/ask prices to their clients.

However, not all brokers that offer spreads starting from 0.0 pips are necessarily ECN brokers. Some brokers may use a dealing desk model or hybrid model that allows them to offer low spreads, but they may not provide the same level of direct market access as a true ECN broker. Additionally, some brokers may offer variable spreads that may widen during times of market volatility or news events, even if they are using an ECN model.

Basically, it is not all about the spread at all. But as the article also said, it is about the type of the execution!

As for your question, the choice of account depends on your trading strategy and preferences. If you are a frequent intraday trader who focuses on scalping or short-term trading, the Edge Account with 0.0 pips and a $7 commission per lot may be more suitable for you as it offers lower spreads and faster execution. However, if you prefer to hold your positions for a longer period, the Classic account with a higher spread and no commission may be more cost-effective in the long run. Ultimately, it's important to consider your trading style, risk tolerance, and overall goals when choosing an account type.

However, if you ask about my opinion, off course, the classic account would be perfect for beginner since it has no commission at all. Remember, the Edge account seems have lower trading fees, however, if you look at the commission which is high, your win rate ratio and your profit need to be enough to pay the commission per lot.

Oh yeah? Why I would not think about the win rate ratio with the amount of profit that I can get. I think I understand now why some traders avoid lower spread and higher commission. It is because of that, and now I understand why the Raw spread account can be the best for professional because they can use effectively the spread. Meanwhile, as beginner, we may have trial and error which is can be risky if we keep open the position without enough profit sometimes loss to pay the commission. By the way thanks for the insight, dude!

"Cutting-edge" is an idiom that is often used to describe something that is innovative and advanced. In the case of TMGM, it means that they are utilizing the latest technology to provide their clients with the best possible trading experience. This includes things like advanced trading platforms, fast execution speeds, and real-time market data. By staying up-to-date with the latest technological advancements in the industry, TMGM is able to provide their clients with a competitive edge and stay ahead of the curve.

And I think TMGM is actually a very well-regarded CFD brokerage. Beside cutting-edge things, they also have invested a lot in their trading platform, which is designed to provide traders with a smooth and intuitive experience. Plus, they offer a wide range of trading instruments, including Forex, commodities, and indices, so there is something for everyone. Overall, I think it is very good choice to trade with them.

It's understandable that you are confused about the differences in the terms you are seeing when signing up for an account, particularly regarding the leverage offered.

It's important to note that regulations can vary depending on the country you are in. TMGM is regulated by different regulatory bodies in different countries, which may result in different terms and conditions for traders in different regions. In your case as an Australian trader, TMGM may be required to adhere to the Australian Securities and Investments Commission (ASIC) regulations which limit the maximum leverage offered to retail traders to 1:20. The detail of ASIC rule, you can read at here : ASIC Regulation

It's possible that the terms you saw initially were geared towards traders in another region where different regulations apply. It's always a good idea to check with the TMGM customer support team to clarify any confusion and ensure that you fully understand the terms and conditions that apply to your specific account.

Let me add some additional information. Before trading with TMGM, it's important to consider their regulations. As indicated in the pop-up window in the article, TMGM is regulated by ASIC in Australia, FSP in New Zealand, the Financial Commission in some countries across Asia and Europe, and VFSC in Vanuatu. It's important to note that trading conditions can vary depending on the regulatory body, and based on the terms mentioned above, global traders may be subject to the VFSC's trading conditions. Therefore, it's possible that traders from certain countries may have different trading conditions. I hope this explanation helps clarify things!

Actually, it is good choice, dude! MT4 is a popular trading platform that's widely used in the forex industry. As a beginner looking to open a standard account (classic account) in TMGM, using MT4 could be a great choice. One of the main reasons why MT4 is such a popular platform is because of its simplicity. Unlike other platforms that can be quite complex and overwhelming, MT4 is user-friendly and easy to navigate. This makes it a great option for beginners who may not be as familiar with the ins and outs of trading.

Another advantage of using MT4 is the wide range of indicators and tools available. These can help you analyze the market and make more informed trading decisions. Some of the most commonly used tools include trend lines, moving averages, and Bollinger bands. MT4 also allows you to customize your charts and indicators, so you can create a trading environment that's tailored to your specific needs and preferences.

When it comes to ECN execution, MT4 is a great platform to use. The standard account (classic account) at TMGM is ECN execution based, meaning that your trades are executed directly on the market without any interference from a dealing desk. This can result in faster and more accurate trades. With MT4, you can access a range of features that make ECN execution easier, such as one-click trading, depth of market (DOM), and advanced order types.

Of course, while MT4 is a great platform, it may not be the best choice for everyone. Some traders prefer more advanced platforms that offer more features and customization options. If you're the type of trader who likes to experiment with different strategies and tools, you may find that MT5 or other platforms offer more flexibility.

Ok guys, let me explain. Although I am also not a user of this broker, I have studied this TMGM broker several times. If you ask whether this broker is safe or not? I feel safe, okay? TMGM is overseen by two of the world's leading financial jurisdictions.

• Australian Securities and Investment Commission (ASIC), the focus is on protecting Australian consumers, investors, and creditors. including one of the top-level regulators in Australia.
• and the Vanuatu Financial Services Commission (VFSC). The VFSC Financial License supports a wide range of trading services such as remittances, payments, Forex trading, bulk commodities, securities trading, and financial consulting.
• TMGM also falls under the umbrella of the Financial Markets Authority. this is the regulator for New Zealand's traders. The FMA is the entity responsible for financial reporting and enforcing securities and other laws relating to financial markets.

Of all the regulators who oversee the TMGM broker, I think this broker is a good and safe broker for trading, moreover, TMGM also offers trading with free deposit and withdrawal fees.

In fact, spreads and commissions are the main source of income for brokers and this is quite understandable as they need to generate income in order to make some money on operating expenses.

So, you have to look closely at the spread yourself. Spreads are divided into two types: variable spreads and fixed spreads. Floating spreads are usually cheaper than fixed spreads because the price of a floating spread follows market movements and can be higher. And if the floating spread is marked up too high, it will make trader's profit decreased even more.

Fees will always increase and vice versa due to variable spreads and meanwhile fixed spread starting pip is higher than variable spread making the commissions is lower than variable spread. So, it's all about broker operating costs. So, if you want to trade with low spreads, you have to pay high commissions and vice versa. Hope you can understand! ! 

@Hayashi: What is the concept of a swap-free option in trading, and how does it differ from an Islamic account?

Basically, it is same! A "swap-free option" in trading, also known as an Islamic account, caters to individuals adhering to Islamic finance principles, particularly the prohibition of Riba (interest). Unlike regular trading accounts, Islamic accounts are entirely interest-free, eliminating swap or rollover fees for holding positions overnight to comply with Sharia rules. While brokers may apply slightly higher spreads or commissions to offset the absence of interest charges, these fees are generally minimal. Accessible to traders of the Islamic faith, Islamic accounts often have asset limitations, strict monitoring for compliance, and they prioritize ethical financial practices by ensuring that no interest is earned or paid, providing a means for traders to engage in financial markets while adhering to their religious beliefs.

TMGM, or Trademax Australia Limited, is a financial services company regulated by the Australian Securities and Investments Commission (ASIC) which adheres to strict standards. ASIC regulation is one of the most stringent authorities worldwide, guaranteeing stability and trustworthy care guidelines to protect clients.

TMGM trading technology and software deliver great performance with additional tools including, enhancing its technical capabilities. This broker offers three trading platforms: MetaTrader 4, MetaTrader 5, and IRESS, and does not provide any proprietary platforms based on our findings. The TMGM platform is rated Excellent with an overall rating of 8 out of 10 compared to over 500 other brokers. We ed the best-performing platforms including MT4, MT5, and IRESS, all packed with advanced features and technology.

But I will explain a little about the IRESS platform. MT4 and MT5 are mostly known for forex trading, However, IRESS is more focused on giving traders access to shares and CFD shares. Additionally, the IRESS platform is also highly customizable, and suitable for experienced traders to play with.

IRESS is a platform that supports professional software options. IRESS Trader is an advanced institutional trading platform.
Compared to the MetaTrader platform, IRESS has a simpler and more intuitive interface. In order to provide advanced level functionality for MetaTrader like IRESS, a number of plugins are required. These features include placing advanced orders, setting reminders when there is financial news or price changes, charts that can be manipulated, and also advanced watchlist features.

Totally! In my opinion, having just two options at TMGM definitely simplifies things. If you're into scalping and prefer low spreads, minimal commission fees, and other scalping-friendly terms, the best fit for you would likely be the account that offers these features most prominently. As for high leverage, you'd want to go for the TMGM account that offers the highest maximum leverage to maximize your potential returns. It's crucial to consider these factors carefully since they directly affect the effectiveness of your scalping or high leverage strategies. So, let's weigh our options and make sure we're choosing the account that aligns perfectly with our trading goals!