How to Become a Quantitative Analyst: Career Path Guide

If you want to become a quantitative analyst, you first need to determine if this career path is a good fit for you. If the following description sounds like you, then you’re probably well suited for a career as a quantitative analyst:

Those who become quantitative analysts tend to be highly skilled in mathematics, data science, or software and application development. They also tend to be individuals that are able to work with little supervision and enjoy doing so. Although making the transition from an academic research environment to a high-pressure work environment may not be an easily transition, those who succeed as quantitative analysts thrive in this environment.

Those who become quantitative analysts are interested in having a career that is both lucrative and intellectually stimulating. Since quantitative analyst jobs are highly competitive, those who wish to enter this career must have a refined skill set in the areas of systematic trading, financial research, managing risk, options pricing, or quantitative programming.

Those who become quantitative analysts must also have the intellectual ability to master complex and abstract mathematical domains, and a willingness to solve seemingly impossible problems while under considerable pressure. 

Many who become quantitative analysts appreciate the fact that those who succeed in this career tend to do so based on merit versus politics or networking. Typically in the world of quantitative analysis, those that demonstrate knowledge, talent, merit and dedication in their work are those that have successful careers.

Below we've outlined what you'll need to begin a career as a quantitative analyst. We've also included helpful information for this career, such as job description, job duties, salary expectations, a list of possible employers and much more!

Education Needed to Become a Quantitative Analyst

In order to get a job as a quantitative analyst, most firms require at least a Master's degree, although preferably a Ph.D., in a subject such as Mathematics, Economics, Finance, Computer Science or Statistics. Master's degrees in Financial Engineering or Computational Finance are also effective if you want to become a quantitative analyst.

For becoming a quantitative analysts, an MBA is typically insufficient on its own, although if coupled with a strong mathematical or computational skill set in addition to some solid experience in financial or business analysis, it may be sufficient for getting a job as a quantitative analyst. 

Regardless of the educational path you take, it is important to be knowledgeable in the following areas if you want to become a quantitative analyst:

Mathematical Concepts:

• Calculus (including differential, integral and stochastic)

• Linear algebra and differential equations

• Probability and statistics

Financial Concepts:

• Portfolio theory

• Equity and interest rate derivatives, including exotics

• Credit-risk products

Computer Competency:

• C++ (typically used for high-frequency trading applications)

• Matlab, SAS, S-PLUS/R or a similar package (used for offline statistical analysis)

• Monte Carlo techniques

• Java, .NET or VBA, and Excel