To become a financial analyst, you'll typically need a bachelor's degree in finance, business or a related field, plus practical experience from internships. You don't need a license before you're hired: some roles need FINRA licenses, but the employer usually arranges them after you join.
Financial analysis is one of the most popular routes into a finance career, and it pays well from the start. Here's how to get in, what the job involves and where the best-paid analyst jobs are.
Figures come from the Bureau of Labor Statistics (BLS) Occupational Outlook Handbook profile for financial analysts, read on 26 October 2026.
What financial analysts do
BLS says financial analysts research and evaluate financial data, forecast future trends and prepare reports with recommendations for businesses and investors. Day to day, that means recommending investments, studying economic and business trends, examining company financial statements to judge value and growth prospects, and meeting company officials to understand their plans.
One subgroup BLS singles out is financial risk specialists, also called financial risk analysts. They measure exposure to credit and market risk, build policies to monitor it and recommend ways to limit losses. BLS counted about 66,000 of them in 2025.
How to become a financial analyst, step by step
- Earn a bachelor's degree. BLS says finance or a related field such as business is typical.
- Do at least one internship. BLS notes that students often benefit from internships that give practical experience.
- Build your technical skills. Analysts use software for data, risk and forecasting, plus math for financial modeling.
- Get licensed if the role needs it. FINRA is the main licensing body for the securities industry. Because most of its licenses need employer backing, companies don't expect you to hold them before you start.
- Consider certification. BLS says certification isn't always required but may improve your professional standing.
- Think about a master's for advancement. Some employers prefer one, and BLS says it may help you move into portfolio or fund management.
Financial analyst pay
| Measure (BLS, May 2025) | Figure |
|---|---|
| Median pay, financial and investment analysts | $102,740 a year |
| Median pay, financial risk specialists | $117,330 a year |
| Bottom tenth of financial and investment analysts | Less than $63,720 |
| Top tenth of financial and investment analysts | More than $180,860 |
| Projected growth, 2025 to 2035 | 7% |
Those figures are as of October 2026. BLS expects about 29,500 openings for financial analysts each year over the decade, and calls the 7% growth rate much faster than average.
Where analysts earn the most
This is the detail most career guides skip. Where you work changes your pay as much as your title does. Here are the BLS industry medians for financial and investment analysts:
| Industry (May 2025) | Median annual pay |
|---|---|
| Securities, commodity contracts and other financial investments | $124,370 |
| Management of companies and enterprises | $101,760 |
| Professional, scientific and technical services | $101,540 |
| Credit intermediation and related activities | $100,120 |
| Insurance carriers and related activities | $95,830 |
The securities and investments industry is also the biggest employer, with 24% of financial and investment analyst jobs. So if pay is your priority, aim your internships at investment firms rather than banks or insurers.
The better-paid specialty: financial risk
If you like statistics, financial risk is worth a look. Risk specialists earned a median of $117,330 in May 2025, and their pay also peaks in securities and investment firms:
| Industry, financial risk specialists (May 2025) | Median annual pay |
|---|---|
| Securities, commodity contracts and other financial investments | $133,070 |
| Professional, scientific and technical services | $119,550 |
| Credit intermediation and related activities | $112,060 |
| Management of companies and enterprises | $110,090 |
| Insurance carriers and related activities | $105,570 |
Unlike general analysts, the biggest employer of risk specialists is credit intermediation, with 35% of their jobs, which means banks and lenders. BLS says risk specialists may use statistical analysis software or econometric models to put numbers on risk, so coursework in statistics gives you an edge.
Skills you'll need
- Analytical skills to work through large amounts of data.
- Computer skills for modeling and forecasting software.
- Attention to detail to catch errors and spot risks.
- Math skills for valuing securities and forecasting growth.
- Communication skills to explain your research and recommendations in writing and presentations.
If you're also weighing accounting, compare this route with how to become a CPA. And if you're deciding on graduate study, our guide on whether a master's degree in finance is worth it lays out the trade-offs.
Choosing a focus
BLS says financial analysts usually focus on trends affecting one region, industry or type of product, such as a foreign exchange market. They need to understand how economic trends, new regulations and political events can affect investments. Picking a sector you already follow, from energy to retail, gives you a head start in interviews, because you can talk about real companies and real numbers.
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What the work week looks like
BLS says most financial analysts work full time in offices, some work more than 40 hours a week, and some travel to visit companies or clients.
My verdict
Becoming a financial analyst is one of the clearer finance routes: a degree, an internship or two and strong spreadsheet and modeling skills will get you started, and the licenses come later with the job. If you want the top pay, target the securities and investments industry from your first internship. It's a well-paid career with strong growth, and it doesn't require years of extra training before you can earn.
Frequently asked questions
What degree do you need to be a financial analyst?
BLS says financial analysts typically need a bachelor's degree in finance or a related field such as business.
Do financial analysts need a license?
Some positions need FINRA licenses, but because most require employer backing, companies don't expect you to have them before you start.
How much do financial analysts make?
BLS reports a median of $102,740 a year for financial and investment analysts in May 2025.
Which industry pays financial analysts the most?
Securities, commodity contracts and other financial investments, with a median of $124,370 in May 2025.
Is financial analysis a growing field?
BLS projects 7% growth from 2025 to 2035, much faster than average, with about 29,500 openings a year.
Can a financial analyst become a portfolio manager?
Yes. BLS says experienced analysts may advance to portfolio or fund manager roles, and a master's degree may help.
Do financial analysts work long hours?
Most work full time, and BLS says some work more than 40 hours a week.
