Best quantitative finance masters UK

Last Updated on December 15, 2022

Financial engineering is best described as the application of mathematical methods to help solve financial problems. It’s also known as computational finance, mathematical finance, or financial mathematics. Whereas most engineering disciplines utilize science, math, and physics, financial engineering uses tools from statistics, computer science, economic theory and applied mathematics. The only similarity to regular engineering is that these professionals are called financial engineers.

See our ranking of the Top 10 Master’s in Financial Planning Online Degree Programs.

What is a Financial Engineer?
Before we describe what a financial engineer is, we’ll say what he is not, which is an engineer. Despite not being engineers, many financial engineers have engineering backgrounds. Financial engineers are highly-educated professionals who play an important role in the fields of investment strategizing and risk management. Through the use of quantitative analysis, they develop successful financial models and solve financial problems. Their use of algorithms, mathematical rules and computer science to assist them in solving financial problems has also earned them the title of computational engineers.

Financial engineers typically work in investment banks, insurance companies, hedge funds, commercial banks, regulatory agencies corporate treasuries. The stock market is a good example of what a financial engineer might do. Using his skills and knowledge, he’ll predict how certain stocks or bonds might perform and make recommendations on how to avoid risky investments.

How to Become a Financial Engineer
Becoming a financial engineer requires completing a master’s degree program in engineering finance or a related field. Students enrolled in a financial engineer program should have a strong background in computer programming, calculus and engineering probability. The program includes courses in mechanical engineering, computer science, applied mathematics, electrical engineering, operations research and theoretical physics. Other courses often found in this program include the following.

Software Engineering for Finance
Financial Markets and Securities
Fundamentals of Trading
Numerical Methods for Finance
Credit Risk Models
Fixed Income Risk Management
Current Topics in Mathematical Finance
Advanced Risk and Portfolio Management
The financial engineer student also will complete a capstone project where he or she has to solve a real-world problem using the financial tools taught in the program. Students are encouraged to complete an internship at a financial institution to obtain hands-on training. Continuing education is also necessary to keep up with the constantly changing financial environments.

Career Outlook for Financial Engineers
Financial or computational engineering is a profession that’s growing very rapidly. Financial engineers are expected to see a job growth of 14 percent by 2024 with about 32,300 new jobs created by that time, according to the Occupational Information Network. Financial engineers earned wages ranging from $60,200 to $137,462 with the average annual wage at $80,000, according to an August 2018 report by PayScale. The two factors that can affect their wages are years of experience on the job and geographic location. An interesting fact is that the majority of financial engineers in the United States are men.

Despite how volatile the finance industry can be, financial consultants and engineers continue to be in demand. As the economy continues to grow, professionals in the financial industry will have many opportunities to play an important role in helping companies thrive and be profitable. Working in the field of financial engineering is a great way to have a career where services are vital and rewarding.

 University of Glasgow



This programme focuses on the economic analysis of financial and banking issues.It is aimed at students interested in financial markets and banking systems, and those who already work in financial and banking institutions, as well as government organisations more broadly.

Academic contact: [email protected]
Teaching start: September
MSc: 12 months full-time
Admissions chatbot
Economics, Banking & Finance will provide you with an excellent understanding of
core issues in open economy macroeconomics, including current account imbalances, exchange rate determination, and monetary policy
the empirical performance of economic models of exchange rates, including modern models based on Taylor rules
key challenges that face policymakers in the global economy
how financial markets and intermediaries influence economic growth and development
how financial resources can enhance economic welfare
how the three main elements of the financial systems operate: banks, bond market, and stock market.
You will be taught by specialists in the field who work regularly with global central banks and policymaking institutions around the world.
Once government guidelines allow us to provide access to labs, you will have access to exclusive computer labs which feature specialist financial and statistical software programmes, including Bloomberg terminals, prestigious financial databases, Matlab, EViews, Stata and Oxmetrics Enterprise.
You will develop the essential concepts, analytical skills and critical thinking you require to start or enhance your career in economic policy, and the banking and financial sector worldwide.
Take advantage of our individualised skills development programme, which will ensure you balance academic theory with crucial employability skills to help you maximise your potential and achieve your career goals.
Adam Smith Business School is triple accredited
You will take four core and two optional courses, and complete a substantial independent piece of work, normally in the form of a dissertation.

Core courses
Optional courses may include
Optional courses are also offered by Economic & Social History, to give you a wider perspective of how the economy operates.

Programme alteration or discontinuation
The University of Glasgow endeavours to run all programmes as advertised. In exceptional circumstances, however, the University may withdraw or alter a programme. For more information, please see: Student contract.

This programme is beneficial if you wish to enter or are already in a profession which requires you to provide economic analysis of financial and banking issues. Recent graduates have been appointed as auditors, economists and strategy & policy analysts for example, in companies such as EY, HSBC and Accenture. We have a dedicated careers and employability team who provide 1-2-1 support and advice, group workshops, employer events on campus and networking opportunities throughout the year to help you with your career prospects.

Tuition fees for 2021-22

Full-time fee: £12450
International & EU
Full-time fee: £24540
Tuition fees for January 2021 start

UK and EU full time fee: £11,800
International full time fee: £23,500
International applicants are required to pay a deposit of £2000 when an offer is made.

Deposits terms & conditions
The University requires a deposit to be paid by International applicants in receipt of an offer to this programme and who require a Certificate of Acceptance for Studies (CAS) from the University in order that they can apply for a student visa. This is required where the programme is competitive and the deposit is required in order to demonstrate your commitment to attend the programme should you meet all the conditions of your offer.

If you are made an offer for this programme the University will write to you and request a deposit with information on how to pay your deposit and the deadline for making the deposit payment. Please note that if you are unable to pay a deposit because you are planning to fund your studies through an official financial sponsor then you should upload a copy of your scholarship application or award letter to your application by the deadline date.

The following guidelines will apply in determining whether or not a deposit will be refunded. Where the deposit is refunded, a 10% handling fee will be deducted.

Deposits WILL be refunded to applicants under the following circumstances:

Where the University is unable to offer you a place.
Where the applicant has personal circumstances such as illness, bereavement or other family situations that has prevented them coming to the UK. Medical or other proof may be requested.
Applicant can prove that they have applied for a visa to attend the University of Glasgow, but the VISA has been refused. The applicant must have shown ‘real intent’ to study at the University of Glasgow but has been unable to obtain their visa.
Applicant does not meet his / her conditions of offer: this may be academic or language test requirements. Satisfactory evidence must be uploaded to the student’s online application to prove that they have not met the conditions of their offer (note that applicants who do not meet the language condition of their offer must show reasonable attempt to meet this, i.e. they must provide a language test which was taken after the date that the deposit was paid).
Deposits WILL NOT be refunded to applicants under the following circumstances:

Applicant decides to go to another institution.
Applicant cannot be released from work to study at the University of Glasgow.
Applicant does not send completed documentation as requested in the condition of the offer: this may be required in order to prove that the offer has not been met for academic or language test conditions – failure to respond to requests for this information will result in no refund.
Applicant has not secured funding to attend the University of Glasgow: this may be as a result of not being successful in applications for scholarships, OR simply not having sufficient funds in bank at time of visa application. This condition will apply unless it can be proven that there are clear mitigating circumstances which have significantly changed the applicant’s position since the time of application.
Applicant has requested a deferral – in this situation, if a deferral is granted, the University will retain the deposit and credit it against the applicant’s account for securing their place for the following year of entry. Please note that some highly competitive programmes do not allow applicants to defer.
Refund requests must be made within 60 days of the programme start date stated on your offer letter: requests made after this date will be subject to discretion.

Additional fees
Fee for re-assessment of a dissertation (PGT programme): £370
Submission of thesis after deadline lapsed: £350
Registration/exam only fee: £170

Fees for 2020/21
Fee information is subject to change and is for guidance only

Adam Smith Scholarship (International)
The University of Glasgow has a number of Adam Smith Scholarships available for Academic Session 2021-22 to International and EU (non-UK) students entering the Adam Smith Business School. The scholarship is awarded as a tuition fee discount.

Adam Smith Scholarship (International)
Adam Smith Scholarship (UK)
The University of Glasgow is offering a number of Adam Smith Scholarships for Academic Session 2021-22 to UK students. Scholarships are available to students entering the below Adam Smith Business School full-time postgraduate taught programmes and are awarded as a tuition fee discount.

Adam Smith Scholarship (UK)
Adam Smith Discount
The University of Glasgow is offering a 20% tuition fee discount for Academic Session 2020-21 and Academic Session 2021-22 to students entering the Adam Smith Business School.

Adam Smith Discount
University of Glasgow African Excellence Fee Waiver
For September 2021 entry we are offering 10 scholarships worth the full tuition fee of a one-year Masters programme to academically excellent students from Africa.

University of Glasgow African Excellence Fee Waiver
Commonwealth Scholarship Schemes
Commonwealth Scholarships are available each year to fund Commonwealth citizens’ study in the UK for undergraduate and postgraduate qualifications. A range of scholarship schemes are available for citizens of Commonwealth countries other than the UK. Further information is available on the Commonwealth Scholarship Commission’s website.

Commonwealth Scholarship Schemes
Postgraduate Talent Scholarships
The University of Glasgow awards Postgraduate Talent Scholarships each academic year to support students who could face financial difficulties in taking up their place to study at the University. The value of each scholarship is £2,000 and they are for students undertaking a one or two year Taught Masters programme, in any of the University’s Colleges. For two year Taught Masters programmes, the scholarship is available in year one only.

Postgraduate Talent Scholarships
PGT Excellence Scholarship
The University of Glasgow has a total of 28 PGT Excellence Awards available to UK Students for Academic session 2021-22. Scholarships are available to students entering any of the University’s colleges and are awarded as a tuition fee discount.

PGT Excellence Scholarship
University of Glasgow International Leadership Scholarship
The University of Glasgow has 70 International Leadership Scholarships available to International and EU (non-UK) students starting a postgraduate taught Masters programme in any discipline for Academic Session 2021-22. The scholarship is awarded as a tuition fees discount.

University of Glasgow International Leadership Scholarship
University of Glasgow Chancellors Award (Nigeria)
The University of Glasgow has 10 Chancellors Award Scholarships available to Nigerian students starting a postgraduate taught Masters programme in any discipline in academic session 2021-22. The scholarship is awarded as a tuition fee discount.

University of Glasgow Chancellors Award (Nigeria)
Erasmus+ Master Degree Loans
Erasmus+ Master Degree Loans are EU-guaranteed loans with favourable pay-back terms. They’re designed to help prospective students finance their Master’s courses in an Erasmus+ Programme country while leaving as little of a lasting economic footprint as possible.

The scheme is designed to provide postgraduate students with the means to pay their tuition and living expenses – thereby allowing individuals to focus on their degree instead of managing their bank balance. The programme aims to be as inclusive as possible, working under the following guidelines:

No need for collateral from students or parents – ensuring equality of access
Favourable, better-than-market interest rates
Pay-back terms that allow graduates up to two years to find work before beginning repayment.
Please visit the Erasmus+ Master Degree Loans website for more information.

Erasmus+ Master Degree Loans
Banco de Mexico
The Mexican National Bank (Banco de Mexico) provides special loans for students who wish to undertake a programme of postgraduate study. The University of Glasgow in partnership with Bank of Mexico FIDERH is offering a fee discount to holders of a Bank of Mexico FIDERH loan. See the FIDERH website for further information.

Banco de Mexico
Chevening Scholarship
Chevening Scholarships are the UK government’s global scholarship programme, funded by the Foreign and Commonwealth Office (FCO) and partner organisations. The scholarships are awarded to outstanding scholars with leadership potential. Awards are typically for a one year Master’s degree at universities across the UK. There are over 50,000 Chevening Alumni around the world who together comprise an influential and highly regarded global network.

For further information, please refer to the Chevening website.

Chevening Scholarship
Postgraduate Student Loan (NI)
If you are a Northern Irish student looking to study a taught Masters programme* in Glasgow then you can apply for a student loan in exactly the same way as you would for a University in Northern Ireland.

Northern Irish students are able to apply for non-means-tested tuition fee loans of up to £5,500, to help with the costs of funding.

For more information visit .

  • does not apply to Erasmus Mundus programmes

Postgraduate Student Loan (NI)
Colfuturo Fundacion para el Futuro de Colombia
The University of Glasgow offer discounts to all successful Fundacion para el Futuro de Colombia (Colfuturo) scholars who enrol at the University of Glasgow to complete a postgraduate programme.

Colfuturo Fundacion para el Futuro de Colombia
CONICyT (La Comsion Nacional de Investigacion Cientifica y Tecnologica de Chile)
The University of Glasgow offers a 25% discount to all successful CONICyT scholars who enrol at the University of Glasgow to complete a postgraduate programme.

CONICyT (La Comsion Nacional de Investigacion Cientifica y Tecnologica de Chile)
CONACyT (Consejo Nacional de Ciencia y Tecnologia) / FUNED Agreement
CONACYT offers a non-refundable scholarship, a monthly stipend and medical insurance of an approximate total of $20,000 USD (in the case of the UK, no medical insurance grant is given since students are already covered by the National Health System) The University of Glasgow offer a 30% discount to all successful CONACyT scholars who enrol at the University of Glasgow to complete a postgraduate programme.

CONACyT (Consejo Nacional de Ciencia y Tecnologia) / FUNED Agreement
Snowdon Masters Scholarships
The Snowdon Masters Scholarships have been designed to identify and accelerate talented disabled individuals through higher education.

The scholarship has been designed to identify and accelerate talented disabled individuals through higher education.

The scholarship is aimed at;

Supporting brilliant students with the ability to create change and influence others
Provide funding for students with excellence in a field of study, within and beyond academia
Accelerate disabled students to become leaders and role-models
Provide opportunity for individuals with the drive and determination to succeed
Please see Snowdon Masters Scholarships website for more details.

Snowdon Masters Scholarships
Postgraduate Tuition Fee Loans England only (PTFL)
If you’re starting a master’s degree, you could get a Postgraduate Master’s Loan of up to £10,609 to help with course fees and living costs. You have to repay your Postgraduate Master’s Loan at the same time as any other student loans you have. You’ll be charged interest from the day you get the first payment.

If you’re studying by distance learning, you can also apply.

Examples of postgraduate master’s qualifications include:

MSc (Master of Science)
MA (Master of Arts)
MPhil (Master of Philosophy)
MRes (Master of Research)
LLM (Master of Law)
MLitt (Master of Letters)
MFA (Master of Fine Art)
MEd (Master of Education)
MBA (Master of Business Administration)
If you plan to study for Master of Architecture (MArch) or an Integrated Master’s qualification, you should apply for undergraduate support

Postgraduate Tuition Fee Loans England only (PTFL)
Postgraduate Student Loan (Scotland and EU)
Eligible full-time and part-time students, undertaking an eligible postgraduate course, can apply for a tuition fee loan up to a maximum of £5,500 towards their course.

Eligible full-time postgraduate students can apply to us for a living-cost loan of up to £4,500.

Please see the Postgraduate funding guide.

For more information visit the SAAS website

Postgraduate Student Loan (Scotland and EU)
Postgraduate Loans for Welsh Students
If you are a Welsh student looking to study a postgraduate programme* in Glasgow then you can apply for a student loan in exactly the same way as you would for a Welsh University.

  • does not apply to Erasmus Mundus programmes

If you’re starting a full-time or part-time Postgraduate Master’s course (taught or research based) from 1 August 2019, you can apply for Postgraduate Master’s Finance and receive up to £17,000 as a combination of grant and loan:

a maximum grant of £6,885 and loan of £10,115 if your household income is £18,370 and below
a grant of £1,000 and loan of £16,000 if your household income is not taken into account or is above £59,200.
For more information visit Student Finance Wales

If you’re starting a full-time or part-time postgraduate Doctoral course (such as a PhD) from 1 August 2019 you can apply for a Postgraduate Doctoral Loan of up to £25,700.

For more information visit Student Finance Wales

Postgraduate Loans for Welsh Students
Alumni Discount
In response to the current unprecedented economic climate, the University is offering a 20% discount on all Postgraduate Research and full Postgraduate Taught Masters programmes to its alumni, commencing study in Academic session 2021/22. This includes University of Glasgow graduates and those who have completed a Study Abroad programme or the Erasmus Programme at the University of Glasgow. The discount applies to all full-time, part-time and online programmes. This discount can be awarded alongside other University scholarships.

Alumni Discount
Humanitarian Scholarships
The University of Glasgow is offering four scholarships (one per college) for applicants to the University who are staying in the UK on humanitarian grounds and are facing challenges in progressing onto Higher Education. The scholarship is open to prospective undergraduate and postgraduate taught students of the University of Glasgow applying for entry in 2021/22. The scholarship meets the full cost of tuition fees for the duration of your programme as well providing an additional £5,000 per year stipend, if the eligibility criteria for university accommodation is met this will also be provided for the duration of your degree. For more information on the accommodation criteria, please see the Accommodation Services section on the website.

We are also offering eight scholarships to students who hold refugee status. This scholarship is awarded as a £2,500 stipend towards study costs, per year of study.

Humanitarian Scholarships
The scholarships above are specific to this programme. For more funding opportunities search the scholarships database

2:1 Honours Degree or equivalent in Economics or a related subject such as Finance, Accounting or Management, with at least 15% of credit-bearing modules in Economics and/or Finance at 2.1 level.

Only applications that meet or exceed our stated entry requirements will go forward for consideration. Any application that does not will be automatically rejected. Applicants will be made offers based on their relative performance compared to other applicants, taking into account both current GPA, or degree classification, and the relevance of an applicant’s academic background.

Please note, applications that meet our minimum entry requirements may still be rejected, based on its score in comparison to other applications received during the same round. Please review our stated entry requirements to ensure you meet or exceed them before submitting your application.

International students with academic qualifications below those required should contact our partner institution, Glasgow International College, who offer a range of pre-Masters courses.

English language requirements
International students
We are proud of our diverse University community which attracts students and staff from over 140 different countries.

Find out more about entry requirements and other country-specific information
International student support & visas
This one-year masters programme is eligible for a new, streamlined visa application process: find out more
To apply for a postgraduate taught degree you must apply online. We cannot accept applications any other way.

Please check you meet the Entry requirements for this programme before you begin your application.

As part of your online application, you also need to submit the following supporting documents:

A copy (or copies) of your official degree certificate(s) (if you have already completed your degree)
A copy (or copies) of your official academic transcript(s), showing full details of subjects studied and grades/marks obtained
Official English translations of the certificate(s) and transcript(s)
One reference letter on headed paper
Evidence of your English language ability (if your first language is not English)
Any additional documents required for this programme (see Entry requirements for this programme)
A copy of the photo page of your passport (Non-EU students only)
You have 42 days to submit your application once you begin the process.

You may save and return to your application as many times as you wish to update information, complete sections or upload supporting documents such as your final transcript or your language test.

For more information about submitting documents or other topics related to applying to a postgraduate taught programme, check Frequently Asked Questions

Guidance notes for using the online application
These notes are intended to help you complete the online application form accurately; they are also available within the help section of the online application form.

If you experience any difficulties accessing the online application then you should visit the Application Troubleshooting/FAQs page.

Name and Date of birth: must appear exactly as they do on your passport. Please take time to check the spelling and lay-out.
Contact Details: Correspondence address. All contact relevant to your application will be sent to this address including the offer letter(s). If your address changes, please contact us as soon as possible.
Choice of course: Please select carefully the course you want to study. As your application will be sent to the admissions committee for each course you select it is important to consider at this stage why you are interested in the course and that it is reflected in your application.
Proposed date of entry: Please state your preferred start date including the month and the year. Taught masters degrees tend to begin in September. Research degrees may start in any month.
Education and Qualifications: Please complete this section as fully as possible indicating any relevant Higher Education qualifications starting with the most recent. Complete the name of the Institution (s) as it appears on the degree certificate or transcript.
English Language Proficiency: Please state the date of any English language test taken (or to be taken) and the award date (or expected award date if known).
Employment and Experience: Please complete this section as fully as possible with all employments relevant to your course. Additional details may be attached in your personal statement/proposal where appropriate.
Reference: Please provide one reference. This should typically be an academic reference but in cases where this is not possible then a reference from a current employer may be accepted instead. Certain programmes, such as the MBA programme, may also accept an employer reference. If you already have a copy of a reference on letter headed paper then please upload this to your application. If you do not already have a reference to upload then please enter your referee’s name and contact details on the online application and we will contact your referee directly.

Application deadlines
International applications (non-EU) deadline
As there is extremely high demand for places on this degree programme, the University has established an application process with six application rounds which recognises that different geographical areas complete and submit their applications at different times of the year. This process aims to ensure fairness and equity to applicants from all geographies.

Below are details of the dates of each application round and the expected date that an applicant can expect to receive a decision, if they submit a complete application in that application round.

Round 1

Dates: 19 October 2020 – 15 November 2020
Expected final decision date: 22 January 2021
Round 2

Dates: 16 November 2020 – 15 December 2020
Expected final decision date: 22 March 2021
Round 3

Dates: 16 December 2020 – 1 February 2021
Expected final decision date: 22 April 2021
Round 4

Dates: 2 February 2021 – 1 April 2021
Expected final decision date: 1 June 2021
Round 5

Dates: 2 April 2021 – 7 May 2021
Expected final decision date: 7 July 2021
Round 6

Dates: 8 May 2021 – 15 June 2021
Expected final decision date: 7 August 2021
All international applications submitted by 15th December 2020 (application rounds 1 and 2) will be reviewed and processed normally with no priority given to any geographic region.

From 16 December 2020, priority will be given to applications which come from geographic areas which have been unable to submit applications before that point.

As we receive a great number of applications, prospective students are only allowed to apply once per year.

UK and EU application deadline
25 August 2021
Application fee
A fee of £25 per application must be paid by all applicants to this programme. The application fee will be requested when you apply online and it can be paid using your credit or debit bank card.

Application fee: Terms and conditions
The application fee is non-refundable so it is important that you check any specific entry requirements for the programme. If you are applying with qualifications from outside the UK then you should check the postgraduate taught entry requirements for your country: see International students: In your country

Applicants who are sponsored may have the application fee waived at the point of applying online. However if the sponsorship status changes before the student registers with the University and the student is self-funding the University reserves the right to invoice the student for the initial application fee.

Financial Engineering Career Guide

Financial Engineering is a field that needs someone who is a jack of all trades. The core discipline would be financed. However, to solve the issues in finance, this guy needs to peep into other disciplines as well like, applied mathematics, computer science, statistics, and economic theory. If this sounds interesting and you’re one of those who can think both in divergent and convergent ways, you should go for this newly evolved field.

Yes, we know that two things would concern you most before you ever take one step forward. First would be – what are the career opportunities in financial engineering! And second – how much I can expect to get paid!

In this article, we will address both of these concerns. All you need to do is to relax and read through. This is everything you need to know about career prospects and compensation details of financial engineering. Below is the structure of this article –

Financial Engineering Career Guide

Let’s jump in. Before we go into the career prospects, let’s have a look at the financial engineering profession in brief.

What financial engineers do?

Financial engineers need to have a thorough knowledge of financial markets and also about the volatility of the markets. On the basis of knowledge in the financial market and financial theories, financial engineers plunge into creating simulations and predicting possible market behaviors. The predictions they make are quite close to the actual ones most of the time, but sometimes they’re not accurate (as there are so many variables and dynamic market forces).

Financial engineering responsiblities

source: oakleafgroup

Financial engineers not only need knowledge in financial markets and theories; rather, they also need significant competence in computer programming and applied mathematics. These skills help financial engineers create simulated financial models so they can most accurately forecast market behavior. They also need to know statistics and economic theory to understand the various forces in the market which control market behavior.

Financial Engineering- Career Roles

Most of the financial engineers work in risk management and financial analysis in various fields. Let’s have a look at the possible fields you can work in if you become a financial engineer –

  • Derivatives Pricing
  • Risk Management
  • Structured Products
  • Valuation of Options
  • Execution
  • Financial Regulation
  • Corporate Finance
  • Portfolio Management
  • Trading

What degrees financial engineers need to acquire to get in the field?

Financial engineering is a field that is being taught in many universities. Let’s have a look at what they are and which universities teach these courses.

Financial Engineering Qualifications

source: Moodys

There are numerous courses you can do for financial engineering. We will just pick the top 10 courses in the world.

According to, these are the top 10 financial engineering courses in the world –

RankUniversity/ProgramTuition Fees (in US $)
1Carnegie Mellon University – Computational Finance80,400
2Columbia University – Financial Engineering61,560
3University of California, Berkeley – Financial Engineering66,082
4Baruch College, City University of New York – Financial EngineeringNon-resident – 35,040Resident – 24,315
5New York University – Mathematics in Finance58,000
6Princeton University – Master in Finance90,700
7Columbia University – Mathematics of Finance60,332
8Cornell University – MEng, FE Concentration74,000
9Massachusetts Institute of Technology – Master of Finance12 months – 75,85018 months – 100,350
10University of Chicago – Financial MathematicsWithout C++ – 66,166With C++ – 81,216


Skills needed to thrive in financial engineering

There are basically three skills you need most if you want to thrive in a financial engineer.

Financial Engineering Skills

source: fanniemae

Mathematical Skills for Financial Engineering:

Training doesn’t mean knowing a few key concepts and thinking that you’re good to go. It should be a lifetime affinity. The more you would push forward, the better you would be in mathematics. And to perform great as a financial engineer, you really need to have a fascination toward mathematics. You should master the following-

  • Linear algebra and differential equations
  • Numerical linear algebra (NLA)
  • Game Theory
  • Calculus (differential, integral & stochastic)
  • Probability & Statistics

Financial skills for Financial Engineering

This would be your core subject, so it’s natural that you need to develop some muscles in financial theories and applied finance. Once the basic foundation of finance is clear, you need to go deep as much as you can. Doing a course, we have mentioned above will propel you to be good at financial theories and financial markets. You should master the following-

  • Financial Modeling
  • Portfolio Theory
  • Accounting
  • Financial Statement Analysis
    • Knowledge of credit risk-products
    • Equity & Interest rate derivatives
    • Fixed Income
    • Monte Carlo Techniques

Computer Programming Skills

Computer programming is a daily requirement in the life of a financial engineer. If not, how would you create simulated financial models? So better get some grip over computer programming. You should master these programming languages –

  • C++ (it’s utilized for high-frequency trading applications)
  • Python
  • Data Mining
  • Java, .NET
  • VBA Macros
  • Excel
  • MatLab, SAS
  • Object-oriented programming
  • Big data modeling

Other than above, you also need to have foundation knowledge in economic theory, logic, analytics, and statistics. Another crucial skill is communication (both verbal and written) because you need to communicate regularly with your teammates, clients, and write reports whenever it would be required.

Financial Engineering Salary

Not everyone can become a financial engineer. It needs guts, effort, and determination to succeed. But why would you put so much effort if you don’t have any idea about the end results? Yes, compensation is not the only thing, but without compensation, the other things that you are looking for won’t give you any nudge.

So let’s have some idea about what financial engineers actually make.

Let’s have a look at what mentions about financial engineers’ salaries.

financial engineering salary payscale


Two things mattered most in coming up with this median salary figure (i.e., US $89,000). The first thing was an experience in the field, and the second is geography. 83% of respondents are men, and the remaining 17% are women in the field. Everybody in the financial engineering field mentioned greater job satisfaction.

financial engineering salary payscale 2


Almost all the respondents mentioned that they get medical coverage from their employers, and they also receive dental insurance coverage.

The most important skill in the financial engineering profession, according to, is financial modeling.

financial engineering salary payscale 3


Now you got an idea about how much compensation you can expect from the financial engineering profession. But you may feel the need to compare your compensation with related professionals. So, here’s what came up with –

financial engineering salary payscale 4


If you pay heed to the median salary of each related profession, you would see that only Actuary, Associate – Investment Banking, Associate – Venture Capital, and Associate Director of Financial Services have similar or more median salary than the median salary of a financial engineer. This is good news because as you gain more experience, you will receive better compensation, and only a few other professionals would be able to match your expertise and income level.

To have a better understanding of the median salary of financial engineers, we also looked at the reports of Let’s have a look at the analysis came up with in regards to financial engineering salary.

financial engineering salary indeed 1


According to, the median salary of financial engineers is a bit higher than the recommendation of To be precise, the median salary as per is the US $8,000 higher per annum. Moreover, the report of is more updated as it is mentioning the median salary of financial engineers as of 1st August 2016. has also found out the recent trends in the compensation of financial engineers. Let’s have a look at the trend, and then we will try to analyze the trend and whether it’s good news for would-be financial engineers or not.

financial engineering salary indeed 2


This trend talks about three years of constant upward and downward pull in the compensation of the financial engineers. If you look closely, you would see that there is an upward pull in the compensation from July 2012 to January 2013. From January 2013, we can see a downward pull in the compensation. That downward pull remained constant in February 2013 and March 2013. From April 2013, there is another upward pull. But that didn’t last for long. The upward pull stayed till May 2013 and then gradually decreased during June 2013. And in July 2013, there is a drastic downward pull, and it stayed constant till September 2013. From September 2013, the compensation curve started to increase and reached an all-time high in January 2014, and from then onwards, there is no increase or decrease in the compensation curve. As this is a two years old report, it would be difficult to conclude anything from this. But there is one thing that can cause a bit of concern for would-be financial engineers, and that is saturation in the compensation. It can be clearly seen that there is saturation between the period of January 2014 and May 2014.

So you need to pay special heed to your skills because if in 2016-17, the saturation continues, you need to have expertise and skills to be able to stand out in the crowd.

How would you be able to receive more salary as financial engineers?

No. There is no short cut to success. But there can be ways successful people have followed, which you can emulate and become successful. In financial engineering careers also, there is a way to get to greatness. Here’s how.

According to Business Insider, if you want to make your mark in financial engineering, here’s what you should do –

  • Find out internship opportunities in reputed firms and give everything in learning the trade during your stay of three months in the company.
  • Quote your annual salary (expected) when you go for an interview more than the annual salary you have got during your internship opportunity.

The first point is self-explanatory. But the second needs some explanation.

According to Business Insider, in 2011, more than 65 graduates went to do internships in reputed firms. Their monthly salary was the US $7,839. They were getting paid monthly, and they were only paid for three months. But instead of quoting the monthly salary, if we take the annual salary based on the monthly salary they got, it would be the US $94,068 per annum.

While analyzing the survey of and, we found that the median salaries of financial engineers per annum are US $97,000 and the US $89,000, respectively. We need to consider that the median salaries reported by and are the result of both experience and skills.

So, when you will come out of the financial engineering/master of finance program and want to get ahead in your financial engineering career, it’s better to look for internship opportunities in most reputed organizations. If you can crack the code, you will be able to quote the expected annual salary on the basis of the stipend you would get from your internship opportunity. And according to the Business Insider, it’s a lot more than one inexperienced graduate can expect to get.

Moreover, you can go multiple internship opportunities while paying heed to learning the needed skills and getting your expected stipend.

Multiple internship opportunities have four big advantages –

  • First, multiple internships will add a couple or triple reputed brand names in your resume, which is always good if you’re looking for a lucrative opportunity.
  • You may get absorbed in the reputed firm/s at the end of your tenure if you prove to be a great asset to the company.
  • Even if you aren’t able to get absorbed into the reputed firm you would do your internship in, you will always be able to quote the annual salary for your future employment opportunities.
  • Lastly, maybe the most important of all is you would learn a ton about the trade-in these reputed firms.

So look out for internship opportunities and use this great strategy to enhance your compensation.

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