what is a money broker

A money broker is an intermediary who arranges short-term loans, usually in large amounts, for borrowers. In the United States, a money broker also arranges the sale of excess bank reserve balances to banks that are short of reserves. Money brokers operate in the money market, which is the market for short-term borrowing and lending between banks, discount houses, and dealers in government securities. Money brokers thrive on volatility, and an effective money broker should have depth and breadth of market knowledge.