An electromagnetic actuator with a movable nonmagnetic disc immersed in a ferrofluid that is exposed to a non-uniform magnetic field generated by permanent magnets is presented. The position of the levitated disc is stably controlled by the current in a command coil. Numerical simulations and experimental tests show that the actuator has linear transfer characteristics. The effect of utilization of ferromagnetic material in the magnetic circuit of the actuator is studied. The current to force and current to displacement characteristics emphasize the influence of these materials and how these characteristics can be improved. For example, using a cylindrical case made of ferromagnetic material, a significant increase of the force is obtained.