Architecture Breakthrough

Sep 2, 2026 · Industry Insights

How Commercial Banks Profit as Market Makers: Spread vs Commission Models

This article explains how commercial banks act as market makers for products like accumulated gold and forex, detailing two profit models: earning spreads by quoting bid/ask prices (e.g., 250.00/252.40) and charging commissions per trade, while noting that profitability depends on the bank's position and risk management capabilities.