Commonwealth Securities Charges 0.1% and Interactive Brokers 0.08% for Australian stock trades. That means that to trade AUD 170k of stock you would pay AUD 136 with IB. But to trade an S&P 500 futures contract costs USD 2.05 at IB. For U.S. stocks IB charge 0.5 cents per share so trading the same value of the SPY ETF costs USD 2.50.
These high prices aren't unique to Australia. IB charges around 0.1% to trade shares in most countries apart from the U.S. and Canada. On the other hand they charge AUD 1-6.5 per contract for Australian futures. So, maybe the question, should be why U.S. and Canadian shares are so cheap to trade.
Anyway, the high prices definitely discourages day-trading of Australian shares.
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