Nikkei SGX have a min move of 5 points = 5 * 500 yen = 2500 Yen... A RT market order would cost 2 * 2500 yen = 5000 yen... With a contract price of 17000 * 500 = 8500000, it represents a ~0.06% transaction cost (for 1 tick spread). On the other hand, ES RT would cost ~0.03% (for 1 tick spread)and Hang Seng RT would cost ~0.01% (for 1 tick spread, in reality more like ~3 ticks which is also ~0.03%). For Nikkei SGX, the trading cost is double of other index futures. The Nikkei OSE is even more expensive with 10 tick min move... costing ~0.12% for a RT This represent serious trading cost for day traders that use market orders. It is like trading ES with a spread of $25 instead of $12.5. In the case of Nikkei OSE, it's like trading ES with a $50 spread... Come to think about it if we trade ES with a $50 spread, a RT market orders would cost $100. It makes it very hard to day trade with such a high transaction cost... To put things in perspective, if we had a RT cost of $100 with ES, we would need to make >$667 net (13pts) per trade on average to keep cost below 15%. This is almost impossible to do for day trading... Are the japs trying to discourage day trading activities or what? Or maybe the Nikkei that is so volatile that market makers demands extra compensation for selling liquidity? I'm scratching my head for ways to reduce cost with limit order... but the trade off with non-fills doesn't seem to be worth it... Any thoughts and comments? Maybe I'm missing something here?