Some investors select their brokers based on the brokerage rate they offer. Several low-rate schemes are circulating in the market. Volume conditions attached to these offers must be clearly understood before you opt for them. Transaction cost and leveraging facility are relevant factors for day traders and speculators who shuffle their portfolios frequently. They need very little service from the broker since they usually end up writing cheques for their losses. For the average investor, brokerage cost is a very small percentage of his total investment.