Research Analyst Job Guide 2025: Roles, Qualifications & Salary Insights

Adam Hayes, Ph.D., CFA, is a seasoned financial writer with over 15 years of experience on Wall Street as a derivatives trader. His expertise spans economics, behavioral finance, and financial markets. Holding a master's in economics from The New School for Social Research and a Ph.D. in sociology from the University of Wisconsin-Madison, Adam also teaches economic sociology at Hebrew University in Jerusalem. He is a CFA charterholder with FINRA Series 7, 55, and 63 licenses.

What Is a Research Analyst?

A research analyst is a finance professional who evaluates securities or assets by preparing in-depth investigative reports used internally or by clients. These experts may also be known as securities analysts, investment analysts, equity analysts, or rating analysts.

Their work involves examining public financial records and market data to assess the value and potential of companies or industries. Their reports commonly culminate in recommendations such as “buy,” “sell,” or “hold” for investment decisions.

Analysts working at investment banks or firms regulated by FINRA often must register with self-regulatory organizations and pass licensing exams.

Key Points

• Research analysts produce detailed reports on securities or assets for internal or client use.
• They analyze companies’ or industries’ financial data and provide actionable investment recommendations.
• Buy-side analysts serve asset management firms, while sell-side analysts typically work for investment banks or brokerage firms.

Understanding Buy-Side vs. Sell-Side Analysts

Research analysts are generally categorized as buy-side or sell-side. Buy-side analysts work for asset management companies such as hedge funds, pension funds, or mutual funds, advising money managers on investment choices aligned with their fund’s strategy. Sell-side analysts are employed by investment banks or brokerage firms and their research is often shared with buy-side clients to influence investment decisions and promote securities.

Buy-side analysts tend to be viewed as more academically rigorous, while sell-side roles may focus more on marketing and client engagement, sometimes offering higher pay.

Important Considerations

Buy-side analysts evaluate investment opportunities to fit specific fund strategies, whereas sell-side analysts provide recommendations like “strong buy,” “outperform,” “neutral,” or “sell.”

Research analysts can be found in various organizations, including asset management, investment banks, insurance companies, hedge funds, and brokerages. According to Glassdoor, the average research analyst salary in 2024 is approximately $90,838, with a range from $68,000 to $125,000.

Essential Qualifications for Research Analysts

Research analyst roles often require a bachelor's degree in finance, economics, or a related field. Many employers prefer candidates with a master’s degree or CFA (Chartered Financial Analyst) certification. Regulatory exams like FINRA’s Series 7 and 63, and Series 86/87 may also be necessary for those working in securities firms.

Research Analyst vs. Financial Analyst: What's the Difference?

While these titles sometimes overlap, financial analysts typically focus on investment analysis with a broad understanding of market trends and business valuation, offering subjective insights and strategic recommendations. Research analysts emphasize quantitative data analysis and mathematical modeling to provide objective evaluations of historical data and market trends.

Financial analysts often operate with a systemic viewpoint on market functioning, whereas research analysts focus on operational efficiency and data-driven outputs, especially within securities research.

Steps to Become a Research Analyst

Successful research analysts excel in mathematics, statistics, and data analysis. A bachelor’s degree in business or finance is foundational, with advanced degrees or certifications enhancing prospects. Obtaining necessary securities licenses is crucial depending on the employer and role.

Research Analyst Salary Overview 2024

In 2024, research analysts earn an average base salary of around $90,838, with typical salaries ranging between $68,000 and $125,000, reflecting experience, location, and employer type.

Is Being a Research Analyst Stressful?

The role demands continuous learning, analytical problem-solving, and effective communication. Tight deadlines and complex challenges can create pressure, making the job high-stress at times.

Summary

Research analysts play a vital role in financial decision-making by analyzing securities data and advising clients or firms. Whether on the buy-side or sell-side, they require strong analytical skills, relevant education, and certifications. With an average salary near $90,000 in 2024, the career offers rewarding prospects balanced with demanding responsibilities.

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