Water-based magnetic fluids, generally intended for biomedical applications, often have various coating molecules that make them stable and compatible with biological liquids. Magnetic fluids containing iron oxide particles have been prepared by a co-precipitation method, using citric acid as stabilizer. The magnetic particles of the magnetic fluids were obtained by chemical precipitation from ferric (FeCl(3)) and ferrous salts (FeSO(4) or FeCl(2)) in alkali medium (ammonia hydroxide). Citric acid was used to stabilize the magnetic-particle suspension. Physical tests were performed in order to determine various microstructural and rheological features. Transmission electron microscopy was the main investigation method for assessing the magnetic-particle size. The dimensional distribution of the magnetic-particle physical diameter was analyzed using the box-plot statistical method while infrared absorption spectra were used to study the colloidal particle structure. The magnetic-fluid density (picnometric method), viscosity (capillary method) and surface tension (stalagmometric method) were measured using standard methods.