False..
I would say a better Definition would be...
A Transgender Individual is a person whom does not fit on the gender spectrum within the common socially accepted boundaries of Male and Female. A Transgender individual has traits either physical, mental or both that do not neatly fit into the social construct of a Binary Gender System.
Also as a side note for those not in the know.. from wikipediaVirginia Prince (November 23, 1913 - May 2, 2009)
Prince seems to have been the first to use the term transgender, which she used to mean a person who lives full time in a gender other than the one identified at birth but without surgical body modification, even though she herself underwent surgical body modification, took female hormones, changed her legal name to Virginia and lived full-time as a woman. This is substantially different than what the word would come to mean later, there currently being sometimes very distinct meanings assigned to the expression. She also made many claims about non-fetishistic nature of most crossdressing, asserting instead that it was a display of identity. In discussions with Robert Stoller of UCLA, however, she affirmed that cross-dressing had erotic aspects.
Some people say we should not use transgender becuase of where it originated form but tbh IMHO I just see it as an evolution of a word. Language words and gender change and evolve just look at gay going from... happy and joyful...

^am I the only one that thinks Gay johnny doesn't look to happy? The brand was used to sell vegetables beans soap and other products way way back...
and

To it's use today...