Monodisperse Co, Fe, and FeCo nanoparticles are prepared via thermal decomposition of metal carbonyls in the presence of aluminium alkyls, yielding air-stable magnetic metal nanoparticles after surface passivation. The particles are characterized by electron microscopy (SEM, TEM, ESI), electron spectroscopy (MIES, UPS, and XPS) and x-ray absorption spectroscopy (EXAFS). The particles are peptized by surfactants to form stable magnetic fluids in various organic media and water, exhibiting a high volume concentration and a high saturation magnetization. In view of potential biomedical applications of the particles, several procedures for surface modification are presented, including peptization by functional organic molecules, silanization, and in situ polymerization.