How to Become a Quantitative Analyst
Job seekers with a mix of high-level math, logic, and business skills are in demand.
Let’s face it—most business operators and individuals are in the dark when it comes to financial trends, forecasting, and decision-making. That’s why they rely on skilled quantitative analysts who always have an ear to the ground when it comes to financial markets. If you excel at working with numbers, data, and probability, that could be you. But first, you’ll need to learn how to become a quantitative analyst.
If you’re looking for job security, quantitative finance may be right up your alley. The Bureau of Labor Statistics projects a 9% increase in new quantitative analyst jobs over the next decade. Plus, you can enjoy a good salary.
Does being a quantitative analyst sound like an ideal career? Read on to learn how to become a quantitative analyst. Below, we outline what quantitative analysts do, the skills you need to get a job as a quant, how much you can expect to earn, and where to find quantitative analyst jobs.
What Is Quantitative Finance?
Quant finance uses large datasets and mathematical models to analyze financial investment options, potential gains, and drawbacks. It generally serves two purposes: pricing securities and managing risks. Many businesses and financial firms rely on quantitative finance to help generate revenue.
What Is a Quantitative Analyst?
A quantitative analyst—also known as a quant—is a professional who employs quantitative, mathematical, and statistical methods to help businesses and organizations make smart financial decisions. Quants also work with algorithms, C++, linear algebra, calculus, and probability. Most quants work for financial institutions, professional services, enterprises, and insurance companies.
What Do Quants Do?
Quants help businesses and individuals make financial decisions that could lead to profits. They do this by assessing the performance of stocks, bonds, EFTs, and other investment types. However, the duties of quants may vary depending on where they work (e.g., investment banks, commercial banks, hedge funds, and wealth management firms).
The general day-to-day duties of quants include:
- Making investment recommendations.
- Helping businesses and individuals build strong financial portfolios.
- Staying updated on business and economic trends.
- Evaluating financial statements to determine the value of businesses.
- Advising company officials.
- Assessing the strength of management teams.
- Creating written reports.
How to Become a Quantitative Analyst
Want to know how to become a quant? To be considered for a quant job, you must have at least a bachelor’s degree in business, mathematics, finance, or a related field. However, many employers prefer candidates who have a master’s degree or Ph.D. in mathematics. There are tons of colleges and universities that offer high-quality programs for quantitative finance. Here is a list of the best undergrad programs.
Quantitative Analyst Skills
To succeed in a quantitative finance career, you must possess the following skills and qualities:
- strong data mining and analysis skills.
- excellent communication skills.
- exceptional computer skills.
- keen attention to detail.
- proficiency in mathematics and statistics.
- financial knowledge.
- good decision-making skills.
- some computer programming skills and the ability to work with C++.
Quant Licensing and Certification
While not always required, pursuing a certificate or license can significantly boost your chances of getting hired. The Financial Industry Regulatory Authority (FINRA) is the primary securities industry licensing organization. A license is required for quants who wish to sell financial products. To be eligible for licensure, you must pass a FINRA-issued securities exam. Plus, there are additional exams you can take if you wish to hold an advanced license, including licensure for securities representatives and traders.
If you have a bachelor’s degree and have several years of quantitative finance experience, you may be eligible to enroll in the Chartered Financial Analyst (CFA) program offered by the CFA Institute. The curriculum covers professional standards and ethics, quantitative methods, economics, financial statement analysis, and more topics relating to a quantitative finance career. To obtain certification, you must pass three exams containing multiple-choice and essay questions.
How Much Do Quants Make?
According to Monster’s salary data, financial quantitative analysts earn a median salary of $98,942 per year. Quant salaries can range from $76,418 to $125,766 and are determined by experience level, professional background, and location. Find out how much quants typically earn in your area by searching your job title and location on Monster’s Salary Tool. You can also find salary data for similar jobs and locations where quants are in the highest demand.
How to Get a Job in Quantitative Finance
Understanding how to become a quantitative analyst is half the battle. Before you start your job search, be sure to showcase your skills and qualifications on your resume. Monster’s financial analyst resume sample can give you an idea of how to get your resume past HR screening software.
Once you’re ready to apply, start looking for quantitative finance jobs on Monster.
Thinking about moving for a quant job? Data from the BLS shows that the top five states where quants are in the highest demand include:
The top five U.S. cities are:
Join Monster and Make a Wise Investment in Your Career
Now that you have an idea of how to become a quantitative analyst, start connecting with hiring managers and search for jobs that match your skills, qualifications, and interests. Getting started is simple. Just create your free profile on Monster and upload your resume. We’ll streamline the job-search process by making your resume available to job recruiters and offering career advice resources from our experts.