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Quantitative analyst vs trader

The differences between quantitative analysts and traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a quantitative analyst has an average salary of $101,197, which is higher than the $90,179 average annual salary of a trader.

The top three skills for a quantitative analyst include python, SAS and risk management. The most important skills for a trader are portfolio, financial markets, and derivative.

Quantitative analyst vs trader overview

Quantitative AnalystTrader
Yearly salary$101,197$90,179
Hourly rate$48.65$43.36
Growth rate9%10%
Number of jobs48,64417,351
Job satisfaction--
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 78%
Average age4043
Years of experience4-

What does a quantitative analyst do?

A quantitative analyst is trained to gather quantitative methods to help companies do business and make other related decisions. In the world of trading, quantitative analysts are in demand. It is their job as quantitative analysts to help banks value their securities. They identify cost-effective investment opportunities and measure risk. They can also work for the insurance companies to develop pricing models and assess risk evaluation strategies. Also, some quantitative analysts work on the back end to enhance computer software and to evaluate financial data.

What does a trader do?

A trader is responsible for buying and selling financial instruments for a firm or an individual, monitoring stock movements, and analyzing price fluctuations. Traders focus on short-term and long-term trades, depending on their customers' demands and best interests. In some cases, traders also act as financial advisors to their clients, providing financial management support, and handling their account investments. A trader must have excellent knowledge of the financial industry and must be highly-analytical, dealing with consistent changes in the stock market and maintain smart decisions to achieve their clients' financial goals.

Quantitative analyst vs trader salary

Quantitative analysts and traders have different pay scales, as shown below.

Quantitative AnalystTrader
Average salary$101,197$90,179
Salary rangeBetween $68,000 And $148,000Between $56,000 And $144,000
Highest paying CityNew York, NYWhite Plains, NY
Highest paying stateNew YorkNew York
Best paying companyThe CitadelThe Citadel
Best paying industryTechnologyFinance

Differences between quantitative analyst and trader education

There are a few differences between a quantitative analyst and a trader in terms of educational background:

Quantitative AnalystTrader
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 78%
Most common majorFinanceFinance
Most common collegeUniversity of Notre DameUniversity of Pennsylvania

Quantitative analyst vs trader demographics

Here are the differences between quantitative analysts' and traders' demographics:

Quantitative AnalystTrader
Average age4043
Gender ratioMale, 79.5% Female, 20.5%Male, 82.1% Female, 17.9%
Race ratioBlack or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1%Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2%
LGBT Percentage7%6%

Differences between quantitative analyst and trader duties and responsibilities

Quantitative analyst example responsibilities.

  • Manage and update early engagement processes daily through SharePoint.
  • Develop C++ codes and unix shell scripts in linux environment.
  • Perform extensive data and statistical analysis using advance packages like SAS to provide business solutions.
  • Develop predictive models using logistic regression and CHAID to target existing and prospective customers for catalog mailing events and online campaigns.
  • Create the next generation distribute C++ mortgage analytics library with Intex.
  • Present the visualization of results with Google motion charts and maps to UNDP representatives
  • Show more

Trader example responsibilities.

  • Manage Smithtown branch office ensuring compliance with NASD regulations.
  • Manage and hedge generation within PJM, MISO, and ERCOT.
  • Manage options trading to ensure a positive ROI within a volatile market.
  • Initiate and manage financial, physical and virtual trades resulting in a positive PnL.
  • Manage products with the supply chain warehouses and interface with both corporate logistics and common carriers.
  • Coordinate MBS and whole loan delivers to ensure settlements are achieve to minimize extension and pair off fees.
  • Show more

Quantitative analyst vs trader skills

Common quantitative analyst skills
  • Python, 13%
  • SAS, 8%
  • Risk Management, 7%
  • Model Development, 5%
  • Statistical Models, 5%
  • C++, 4%
Common trader skills
  • Portfolio, 13%
  • Financial Markets, 6%
  • Derivative, 5%
  • Fixed Income, 5%
  • Equities, 4%
  • Securities, 4%

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