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.