The Jordan Securities Commission provides a periodically updated list of companies licensed to provide financial services activities in foreign markets, including the types of licenses they hold. It also includes the names of foreign brokers contracted with these companies to operate as financial intermediaries on behalf of clients in foreign markets.

You can access both lists through the following link:

https://www.jsc.gov.jo/page/ar/tradingforeignsecurities

The Commission enforces strict “segregation of funds” rules, whereby companies are required to maintain completely separate bank accounts for client funds, entirely separate from the company’s own operational accounts and assets. This segregation ensures that your funds are not used to cover the company’s expenses or liabilities, and it protects your investments in the event that the company faces any financial difficulties.

The licenses granted to these companies allow them to deal in a wide range of financial instruments in global markets. These instruments include stocks, foreign exchange currencies, precious metals such as gold and silver, as well as commodities and other financial instruments traded on internationally regulated stock exchanges.

As client funds are legally “segregated” from the company’s own assets, they do not form a part of the company’s holdings in the event of liquidation or bankruptcy. In addition, the Commission retains bank guarantees provided by the company, which can be used to restore investors’ rights. This financial segregation is a main pillar designed to protect your savings from the risks associated with the company’s administrative or financial distress.

A broker or financial advisor is not permitted under any circumstances to guarantee profits or promise fixed or certain investment outcomes. The broker’s role is limited to executing orders or providing technical advice and guidance, while investment results remain subject to market fluctuations and risks, which are carried solely by the investor. Companies are also prohibited to mislead clients or provide inaccurate information regarding expected returns.

Prices are determined through the interaction of supply and demand, which is reflected in buy and sell orders entered into the exchange’s electronic system, known as the order book. These orders are organized according to the price priority principle first in (descending order for buy orders and ascending order for sell orders) , and second by time priority.

Any investor can purchase shares in foreign markets by contracting a local financial services company licensed by the Jordan Securities Commission. The process is initiated by opening a trading account and signing a formal written agreement that outlines all rights and obligations. The investor is also required to review an “information disclosure document” that clarifies the risks associated with these markets, ensuring full awareness of the nature of international financial investment before trading begins.

Buy and sell orders are executed by submitting clear instructions to the broker, either in writing or through the company’s secure electronic trading platforms. From a financial perspective, the law requires that the account be pre-funded by the client via bank transfers or cheques. Dealing in cash or granting unsecured credit facilities is prohibited, ensuring the financial integrity of both the investor and the brokerage firm.

As for selecting the appropriate broker, the primary criterion is ensuring that the company holds a valid license from the Jordan Securities Commission to conduct “foreign stock trading” activities. The most preferred broker is one that maintains full transparency in displaying the commissions and fees, provides advanced trading systems, and works with foreign intermediaries subject to strict international regulatory oversight. This provides an additional layer of protection and professionalism in executing global investment transactions.

The Jordan Securities Commission licenses financial services companies (brokers) and does not license trading platforms themselves. The Commission’s licensing mandate is limited to authorizing qualified companies to conduct financial services activities, including brokerage, investment management, and financial advisory services, subject to their compliance with all applicable legal, financial, operational, and technical requirements.

Accordingly, the trading platforms used by investors are considered technological tools provided by licensed financial services companies. The use of such platforms is subject to the Commission’s technical and regulatory requirements to ensure the security, integrity, and protection of investors’ transactions and data.

Investors should therefore always verify that the company offering the trading platform is licensed and included in the Commission’s official register of authorized entities.

Furthermore, licensed companies are required to obtain the necessary technical and regulatory approvals before making any trading platform available to clients. This ensures that the platform is legally connected to the relevant financial markets and operates in accordance with applicable regulatory standards, while providing the highest levels of transparency, oversight, and monitoring of orders and transactions executed through the platform.

The Commission does not grant licenses for trading on foreign markets except to specialized financial services companies that meet stringent technical and financial requirements. As for banks, financial services companies affiliated with them may conduct this activity upon obtaining the necessary licenses. However, this activity does not fall within the scope of conventional money exchange companies.

Jordanian regulations strictly prohibit short selling or trading on credit in foreign markets. Clients are required to maintain sufficient funds in their account with the licensed financial services company to cover the full value of any purchase order before it is executed.

In addition, licensed financial services companies are prohibited from providing financing, credit facilities, or loans to clients for the purpose of trading in foreign markets, this is intended to protect investors from debt and high-risk exposure.