TSX 60 Index: What It Is and How to Trade It

The TSX 60 Index is Canada's primary large-cap stock market benchmark, tracking the 60 biggest companies on the Toronto Stock Exchange. Launched in 1998 and operated by S&P Dow Jones Indices, it is heavily weighted toward financials and natural resources, reflecting Canada's economic structure.

This guide will walk you through everything you need to know: from its composition and price drivers to practical steps for trading CAN60 CFDs on platforms like TIOmarkets.

Traders often choose the TSX 60 for its commodity exposure, Canadian dollar diversification opportunities, and significant financial sector representation among large-cap Canadian companies.

TSX 60 Index: Key Facts

TSX 60 Index - What It Is & How Does It Work

The TSX 60 Index is a capitalization-weighted stock market benchmark that measures the performance of 60 large-cap Canadian companies across 11 economic sectors. It serves as the primary indicator of Canada's equity market health, tracking the performance of blue-chip companies across the Canadian equity market. Also referred to as S&P/TSX 60, it comprises the largest and most liquid companies listed on the Toronto Stock Exchange, representing approximately one-third of Canada's total stock market capitalization.

Why the TSX 60 Index Exists

The TSX 60 was established to provide a concentrated measure of Canadian large-cap stock performance, functioning as the country's equivalent to major international benchmarks. Its primary purpose is to serve as a market benchmark that institutional investors, portfolio managers, and analysts use to gauge the overall health of the Canadian stock market index. It enables investors to gain exposure to Canada's most significant publicly traded corporations through a single instrument.

How Does the TSX 60 Index Work? Index Calculation Methodology

The TSX 60 uses a free-float market capitalization weighting methodology, where each company's influence on the index is proportional to its publicly available shares' total market value.

Under this weighting system, larger companies exert greater influence on index movements than smaller constituents. For example, when a heavily weighted stock like Royal Bank of Canada experiences a significant price change, it impacts the overall index more substantially.

What Companies Are in the TSX 60 Index?

The eligibility requirements to qualify for TSX 60 inclusion ensure that only the most established and actively traded Canadian stocks enter the index. Companies must demonstrate consistent trading activity and maintain sufficient market capitalization. Aside from this, there is periodic review and adjustment of constituent stocks (index rebalancing) to ensure the index continues to accurately represent its intended market segment. The TSX 60 undergoes quarterly reviews.

Major TSX 60 Index Components

The index includes Canada's largest corporations across sectors including Royal Bank of Canada, Toronto-Dominion Bank, Enbridge, Canadian Natural Resources, Shopify, and Brookfield Corporation.

• Financial Services: The financial sector dominates the TSX 60 index composition, featuring all six major Canadian banks. Major insurance companies and asset managers provide additional financial sector exposure.
• Energy Sector: Canada's energy infrastructure is represented through pipeline operators, major oil, gas and uranium producers.
• Materials Sector: Gold mining companies feature prominently in the materials sector, providing precious metals exposure. Diversified mining operations offer exposure to base metals and copper production. The fertilizer and agricultural chemicals industry is also present.
• Technology and Consumer Stocks: Technology companies, e-commerce platforms and software conglomerates are included here.
• Industrial Sector Stocks: North American railways form the backbone of the industrial sector, while professional services companies provide exposure to information services and engineering consulting.
• Other Sectors: Additional sectors include Telecommunications, Utilities and real estate services providers.

For traders seeking exposure to Canada's leading corporations, TSX 60 Index CFDs offer a streamlined way to access this diverse mix of blue-chip companies through a single instrument. New traders wanting some more knowledge and to learn how to trade indices on MT4 and MT5, here’s a useful trading guide.

TSX 60 Sector Breakdown: Current Sector Composition

Financials dominate the TSX 60, followed by Energy, Materials, and Information Technology, reflecting Canada's economic structure centered on banking, natural resources, and commodities.

How to Trade the TSX 60 Index?

The TSX 60 Index offers traders a practical gateway to Canada's corporate elite, combining financial sector stability, commodity exposure, and growth potential in a single tradeable instrument.

Trading the TSX 60 via CFD Trading

A Contract for Difference (CFD) is a derivative instrument that allows traders to speculate on index price movements without owning the underlying securities. When you trade TSX 60 as CFDs, you enter an agreement to exchange the difference in the index value between opening and closing a position. Trading symbols vary but CAN60 is a common designation for TSX 60 CFD products.

TSX 60 CFD trading offers several characteristics that differ from direct ETF investment, including the ability to use leverage and take short positions without additional borrowing requirements. Leverage in TSX 60 leverage trading means traders can control larger positions with smaller capital outlays, though this amplifies both potential gains and losses proportionally.

Canadian market CFD trading requires understanding of risk management principles including stop-loss orders and appropriate position sizing relative to account capital. Brokers like TIOmarkets offer many indices to be traded as CFDs - among which the CAN60, providing access to this Canadian benchmark index for international participants.

What Are the Trading Hours for TSX 60?

TSX 60 trading hours follow the Toronto Stock Exchange schedule of 9:30 AM to 4:00 PM Eastern Time.

Time zone considerations matter for international traders, as Toronto time aligns with New York (Eastern Time), creating overlap with U.S. market hours. Canadian market holidays affect TSX 60 trading availability, with the exchange closing for statutory holidays including Canada Day and Thanksgiving (which differs from U.S. Thanksgiving).

Brokers may offer extended hours for their CFDs depending on each product, allowing positions to be opened or closed outside standard exchange hours.

Can International Traders Access the TSX 60 Index?

Cross-border investment accessibility has expanded significantly through CFD trading, with brokers like TIOmarkets enabling international participants to trade CAN60 without traditional barriers. For a comprehensive overview of how CFD trading works, see our guide to choosing the best forex broker for CFD trading across stocks, indices, and commodities.

Currency conversion considerations are generally eliminated in CFD trading, as positions are typically denominated in the account's base currency. TIOmarkets offers accounts denominated in Canadian dollars, allowing traders to match their account currency with the index's native denomination and potentially reduce currency conversion costs.

CFD trading typically simplifies certain considerations compared to direct stock ownership, though traders should consult local tax regulations regarding treatment of derivative trading profits and losses in their jurisdiction. Traders can access Canadian indices trading by registering an account with TIOmarkets here.

Risk management remains essential for CFD trading, with stop-loss orders and appropriate position sizing helping manage exposure to leveraged instruments. Understanding the relationship between leverage and potential outcomes helps traders make informed decisions about position sizes relative to their account capital and risk tolerance.

Key Price Drivers: Factors that Influence TSX 60 Index Price

When researching what is the TSX 60 Index and how to trade it, it’s useful to understand the multiple factors that influence its movements. Commodity prices, economic conditions, and currency fluctuations play particularly significant roles due to the index's sector composition.

Global commodity prices significantly impact the TSX 60 given the combined Energy and Materials weighting of approximately 28%. Historical data suggests that when WTI crude oil prices rise by 10%, the TSX 60 has historically shown positive correlation, though the relationship varies based on broader market conditions. Similarly, gold price movements tend to influence the index through its substantial precious metals mining exposure, with rising gold prices generally supporting Materials sector constituents.

Canadian economic indicators including GDP growth, employment data, and Bank of Canada monetary policy decisions affect index performance across multiple sectors. Interest rate changes particularly impact the Financials sector, which represents nearly 40% of index weight, as higher rates typically support bank profitability through wider net interest margins. The United States economy exerts considerable influence given approximately 75% of Canadian exports flow to the US market, creating strong correlation between American economic growth and TSX 60 performance.

Currency movements affect the index through multiple channels, with CAD/USD exchange rate fluctuations impacting exporters differently than import-dependent businesses. Generally, Canadian dollar depreciation tends to benefit energy and materials companies that earn revenues in U.S. dollars while incurring costs in Canadian dollars. Bank of Canada and Federal Reserve policy decisions create spillover effects that influence both interest rate-sensitive sectors and currency valuations.

Trading TSX 60 vs S&P 500: What Are the Key Differences?

The TSX 60 tracks 60 large Canadian companies with heavy Financials and Energy weighting, while the S&P 500 covers 500 large US companies dominated by Technology stocks, representing fundamentally different economic structures and market exposures.

The most fundamental difference lies in constituent count and market coverage. Sector composition differs substantially, as the S&P 500 maintains significant Technology weighting, while the Canadian index has much greater Financials and Energy exposure.

What this means for traders is that the TSX 60 tends to respond more strongly to commodity price movements, interest rate decisions, and banking sector developments, while the S&P 500 often reacts more significantly to technology earnings, growth stock sentiment, and innovation-driven news. Traders commonly find the TSX 60 offering potential hedging opportunities during periods when technology stocks underperform, or additional upside exposure during commodity bull markets.

Market capitalization scale separates the indices considerably, with the S&P 500 representing trillions more in total market value than the Canadian equivalent. Currency denomination creates additional differentiation, with TSX 60 returns calculated in Canadian dollars versus U.S. dollars for the S&P 500, affecting international investor returns based on exchange rate movements.

For traders, this translates to different liquidity profiles and potentially wider spreads on the TSX 60 compared to S&P 500 products. Additionally, traders holding positions in both indices take on implicit currency exposure, meaning CAD/USD movements can either enhance or diminish returns when comparing performance across the two markets. Some traders use this currency dynamic strategically, pairing TSX 60 positions with specific CAD/USD views.

Trading TSX 60 Index on TIOmarkets

TIOmarkets has added this instrument to their offering, enabling traders to trade it as CFDs on MT4 and MT5 platforms under the CAN60 ticker symbol - as shown below.

CAN60 Contract Specifications

Understanding contract specifications helps traders calculate position sizes and margin requirements accurately.

The contract size of 50 means that each standard lot represents 50 times the index value. For example, if the TSX 60 trades at 1,400 points, one lot equals a notional value of 70,000 CAD (1,400 × 50). The 1% margin requirement means traders need to deposit 1% of position value to open a trade, providing significant leverage exposure.

Trading Hours and Liquidity

Toronto Stock Exchange hours run from 9:30 AM to 4:00 PM ET, with the most significant liquidity typically occurring during overlap with US market hours beginning at 9:30 AM ET. This overlap period often features tighter spreads and more efficient order execution due to increased market participation across North American exchanges.

Why Trade the TSX 60 Index with TIOmarkets

• Commission-free trading: TIOmarkets’ VIP Black and Standard trading accounts offer trading from $0 per lot, with costs incorporated into spread pricing.
• Advanced trading platforms: Desktop, web, and mobile versions of MT4 and MT5 provide flexible access to CAN60 trading across devices.
• Order execution: Order processing typically occurs in milliseconds under normal market conditions, supporting timely trade execution.
• 30% Loyalty bonus: Deposits to Standard accounts may qualify for bonus funds, subject to terms and conditions.

Key Considerations for TSX 60 Index CFD Trading

• Monitor WTI crude oil and gold prices for potential directional cues given substantial Energy and Materials sector exposure
• Track Bank of Canada rate decisions, which may impact approximately 37% of index weight through the Financials sector
• Watch CAD/USD exchange rate movements for potential effects on export-oriented sector performance
• Expect potentially higher volatility during U.S. market overlap (9:30 AM - 4:00 PM ET) when trading volume typically increases
• Consider how macroeconomic conditions may affect relative performance between financials and energy constituents