How to Become a Quantitative Analyst in 2023

There are many data roles in the modern workplace, many of which specialize in a particular field. One such career is that of a quantitative analyst. This role uses mathematical and statistical techniques to help organizations make financial decisions. If you’re wondering how to become a quantitative analyst, this article will explore everything you need to know. 

We'll examine what a quantitative analyst does and why it’s such a vital role and explore the level of education and skills you’ll need to enter the profession. We picked out quantitative analyst on our list of top analytics careers, and you can find out about other roles in our full article. 

What is a Quantitative Analyst? 

A quantitative analyst is a financial professional who uses mathematical and statistical techniques to analyze and model data to help inform investment decisions. They typically work in the financial industry in risk management, portfolio management, and trading. 

Quantitative analysts (sometimes affectionately known as ‘quants’) use their skills in mathematics and statistics to help organizations make informed financial decisions. 

What does a quantitative analyst do?

As with any such data role, the specific tasks a quantitative analyst performs varies depending on their position, industry, and organization. However, some common functions that they may be involved in include:

• Developing and implementing mathematical models to help forecast financial markets and identify investment opportunities
• Analyzing financial data to identify trends and patterns
• Building and testing financial trading algorithms
• Designing and implementing risk management strategies
• Collaborating with other professionals, such as traders and portfolio managers, to make investment decisions

As you can see, quantitative analysts work across a range of different functions and must have a broad knowledge to be successful. 

Why become a quantitative analyst?

This is a role that’s essential to many modern businesses. As such, there are quite a few reasons why someone might decide to become a quantitative analyst. These include: 

• High earning potential. Quantitative analysts often earn high salaries, especially in the financial industry. The base quantitative analyst salary ranges from $61,000 to $129,000 per year in the US, according to data from Payscale. This varies depending on the role, organization, industry, and your experience and education. 
• Intellectual challenge. This role involves using advanced mathematical and statistical techniques to solve complex problems, which can be intellectually stimulating for those who enjoy this type of work.
• Impact on financial markets. As a quantitative analyst, you can have a direct impact on the financial markets and the investment decisions of organizations.
• Opportunities for career advancement. There is a high demand for quantitative analysts, and those with the right skills and experience can often advance quickly in their careers. According to LinkedIn data, at the time of writing, over 15,000 quantitative analyst jobs were being advertised in the US.
• Variety of work. Quantitative analysts can work in various industries and organizations, and their tasks can vary depending on the specific role and company. This can provide opportunities for career diversity and growth. Industries such as finance, technology, insurance, retail, energy, media, and more all require quantitative analysts. 

How to Become a Quantitative Analyst: 5 Steps for Success 

We’ve outlined some of the steps you’ll need to take to secure a job as a quantitative analyst. Again, these will differ depending on your existing skills and knowledge, as well as your career ambitions. 

1. Start with your education

As you can tell from the quantitative analyst job description we’ve outlined above, this role typically requires a strong educational background. You’ll need to be comfortable with mathematics and statistics, as well as have a working knowledge of computer programming. 

For many, the quantitative analyst career path starts with a bachelor’s degree in mathematics, statistics, computer science, or engineering. From there, a master’s degree in computational finance or financial engineering is the next step. Some also choose to pursue a doctorate in maths or statistics. 

So, education is a good starting point if you want to be a quantitative analyst. Many quants start by learning a programming language like R or Python, and you can take our quantitative analyst with R track and quantitative risk management in Python course to get started. If you’re totally new to the field, an introduction to statistics is also a strong starting point. 

2. Develop your skills 

Whether as part of your formal education or as your own personal project, you’ll need to work on several skills to become a successful quant. As we’ve mentioned already, you’ll need mathematics and statistics skills to allow you to develop financial models. As well as a firm grasp of calculus (derivatives, integrals, and optimization) and linear algebra (matrices, vectors, and linear equations), you’ll need to understand probability (random variables, distributions, and hypothesis testing) and other numerical methods. 

As well as these skills, you’ll also need: 

• Programming skills. We’ve already covered that R and Python are useful for quantitative analysis. They can help you build and implement your models and algorithms. 
• Critical thinking skills. You’ll often encounter fairly complex problems in your work as a quant. You’ll need creativity and critical thinking to overcome them, often with innovative solutions. 
• Communication skills. Quantitative analysts work with all kinds of other professionals, such as traders and portfolio managers, to make investment decisions. You’ll need to communicate your findings and recommendations clearly and effectively, both orally and in writing.
• Attention to detail. Given that you’ll work with large data sets, you’ll need to be able to draw conclusions from and spot patterns, errors, and inconsistencies in the data. 
• Knowledge of financial markets. As well as your technical skills and power skills, you’ll also need to be familiar with the finance world, keeping up to date with trends. 

3. Gain some practical experience

As with many careers in the data world, experience often counts just as much as your qualifications. If an employer sees that you already have hands-on knowledge of your role, it can give you a big boost during the application and interview process. There are several ways to gain and demonstrate such experience: 

• Create a portfolio. We’ve got an entire article about creating a data science portfolio, and much of this advice applies to quantitative analysts too. Having a space to demonstrate your work is essential, whether it’s from your education or personal projects.
• Work on some personal projects. You can gain experience by working on personal projects, such as building your own financial models or trading algorithms. This can provide an opportunity to apply their skills and knowledge in a self-directed setting and can also be a valuable addition to your resume or portfolio. 
• Take an online course or challenge. Courses such as this Intermediate Portfolio Analysis in R one can give you the chance to advance your skills finance skills to backtest, analyze, and optimize financial portfolios. Such work can go into your portfolio.  

4. Look for career opportunities 

Once you’re confident that you’re ready for a quantitative analyst job, you’ll want to start getting some insight into the type of roles that are out there. To gain some initial experience, there are a couple of routes you can consider: 

• Internships. Many organizations, especially in the financial industry, offer internship programs for students interested in quantitative analysis. Internships can provide you with valuable hands-on experience and help you develop the skills and knowledge needed to succeed in this field.
• Freelance or contract work. You might even be able to gain experience through part-time or contract work, such as working as a research assistant or data analyst. This can provide exposure to real-world scenarios and help you get familiar with a professional setting.
• Networking. It’s always helpful to have a presence among other professionals in the industry. Staying connected with other quantitative analysts via networking events and online tools can help you forge relationships and may lead to potential career opportunities. 

5. Work on your resume and applications

When it comes to applying for entry-level positions, there are a few things you’ll need to do. Look at some quantitative analyst job descriptions and start tailoring your resume to match the requirements. There are a few tips here to create a strong quantitative analyst resume: 

• Focus on your technical skills. As a quantitative analyst, your technical skills are likely to be the most important factor in your success. Be sure to highlight your proficiency in areas such as mathematics, statistics, and computer programming, and include any relevant certifications or coursework.
• Showcase your experience. If you have previous work experience in quantitative analysis, be sure to include it on your resume. Include details about the projects you worked on, the technologies and tools you used, and the results you achieved. You should link to your portfolio, and if you have relevant internships or part-time work, include those as well.
• Highlight your problem-solving skills. Quantitative analysis involves solving complex problems using mathematical and statistical techniques. Be sure to include examples of how you have used your problem-solving skills in previous situations, such as by developing and implementing financial models or algorithms.

Work Towards Becoming a Quantitative Analyst Today

As we’ve seen, the route to getting a job as a quantitative analyst can be quite a long one, but it can be an extremely rewarding career. The first place to start is with the skills and knowledge that are fundamental to the career, such as mathematics, statistics and a programming language. Our Quantitative Analyst with R track is an ideal place to start, giving you many of the fundamentals with over 60 hours of content. 

Once you have the necessary skills, you can start working on all kinds of projects to develop your practical understanding of the field. By building a portfolio of work and getting some hands-on experience, you’ll be in a good position to find internships and entry-level positions. 

This is an exciting career with a huge amount of potential, and starting today can pay dividends for years to come. Good luck!