The following article discusses the career path of Quantitative Analyst. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Quantitative Analysts.
Quantitative analysts are responsible for the creation of a strategy that enable stock trades to be as efficient as possible. They work hand in hand with various mathematical professionals in an effort to improve existing trading strategies and protocols. They have a range of different skills, focusing on computers, finances, and mathematics, which they employ to maximize profit levels.
These professionals also create analytical models and edit them as and when needed. They join forces with other financial experts to come up with better tools to ensure stock and financial portfolios are maintained and improved on. They also report to the company and ensure the right software is in place. They have strong organizational and mathematical skills, therefore, and have a drive and passion for building better portfolios.
Other job duties of a quantitative analyst include:
- Analyzing and researching available statistics of the market to create, validate, test, implement, evaluate, and maintain quantitative models and software programs
- Perform default risk modeling, loan pricing, and risk analysis
- Creating new experiments and tests in order to gather data
- Consolidating, querying, and presenting findings to senior management
- Developing new portfolios
Where We Work
According to the U.S. Bureau of Labor Statistics, there were 296,100 financial analysts in 2016, a profession closely related to that of quantitative analysts. The largest employers of these professionals were:
- Securities, commodity contracts, and other financial investments and related activities: 24%
- Professional, scientific, and technical services: 14%
- Credit intermediation and related activities: 13%
- Management of companies and enterprises: 12%
- Insurance carriers and related activities: 7%
How to Become
A quantitative analyst is expected to hold a bachelor’s degree in finance or related field, such as business, as a minimum. However, many also complete further education. Furthermore, work experience and proven success are of key importance.
A bachelor’s degree is generally the minimum requirement. While a bachelor’s degree in finance is recommended, fields such as mathematics, statistics, economics, and accounting are also suitable. Licenses and certifications are also available and sometimes required by employers.
The main licensing body for the securities industry is the Financial Industry Regulatory Authority (FINRA). If quantitative analysts wish to sell financial products, they will need to be licensed. To receive this license, employer sponsorship is required. This means that analysts are not expected to already be licensed when they start a job.
Certification is usually recommended depending on the position. The Chartered Financial Analyst (CFA), offered by the CFA Institute, is very popular. To obtain CFA certification, a quantitative analyst must hold a bachelor’s degree, have four years of relevant professional experience, and pass three different examinations. They can also obtain further certification in specialty fields. Doing so will also greatly improve their advancement prospects.
Traits & Qualities
The most effective quantitative analysts have the following traits to some degree or other:
- Excellent analytical skills
- Great communication skills, both verbal and written, particularly in relation to report writing and holding presentations
- Computer skills, focusing on financial analysis software
- Strong decision making skills
- Detail oriented
- Excellent mathematical skills
The national average salary estimate for Quantitative Analyst was $127,870. This number is estimated from over 845,324 employees, users past and present job advertisements from Indeed.com. This equates to an hourly salary of $66.60 and monthly of $10,656.
- Most Reported
Salary by State
The following section lists Quantitative Analyst salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, Arkansas had the largest quoted salary of $164,510 while Oregon had the smallest quoted salary of $35,029.
Top 20 National Employers
According to Indeed.com, the following states had employers looking to hire a Quantitative Analyst. The quoted salary figure represents the average salary from all job postings by this employer.
|Employer Name||Location||Average Salary|
|GQR Global Markets Quantitative Analyst||Connecticut||$263,326|
|Averity Quantitative Analyst||Pennsylvania||$245,145|
|FusionFind Quantitative Analyst||Pennsylvania||$235,885|
|Stratactico Quantitative Analyst||New York||$235,186|
|Integrated Management Resources, LLC Quantitative Analyst||New York||$232,152|
|JMD Partners Quantitative Analyst||New York||$223,624|
|Multi strategy hedge fund Quantitative Analyst||Illinois||$200,000|
|Roljobs Technology Quantitative Analyst||Pennsylvania||$194,029|
|NBN, Inc. Quantitative Analyst||Pennsylvania||$194,029|
|Eka finance Quantitative Analyst||New York||$180,499|
|GinasTechJobs.com Quantitative Analyst||Illinois||$180,000|
|Employment Staffing Quantitative Analyst||New York||$175,000|
|Brokerage Firm Quantitative Analyst||Connecticut||$173,241|
|Palm Mason Quantitative Analyst||Connecticut||$173,241|
|Hunter Bond Quantitative Analyst||New York||$171,567|
|Focus Capital Markets Quantitative Analyst||New York||$171,115|
- Quantitative analyst – Wikipedia
- Salary Outlook for Quantitative Analyst Degree Grads
- Best Online Quantitative Analysis Degree
- 5 Ways to Develop Quantitative Analysis Skills
|Career Name||Average Salary|
|Director of Engineering||$138,182|
|Director of Pharmacy||$136,890|
|Chief Marketing Officer||$136,769|
|Chief Financial Officer||$130,123|
|Chief Information Officer||$121,573|
|IT Security Specialist||$113,452|