The effect of surfactant admixture (stearic and oleic acids) with a variety of milling (dry milling, milling in water and ethanol) on pressing and sintering and magnetic properties of the Fe-30Cr-20Co-2Mo-2W (wt %) hard magnetic powder alloy was studied. The addition of stearic and oleic acids in the amount of up to 2 wt % during dry or wet milling increases the density of pressed samples. The use of surfactants during milling in water and ethanol increases the density of sintered samples. X-ray diffraction shows that only accumulation of defects takes place in the crystal structure of the particles, and no additional phases form during dry or wet milling of powder mixtures containing a surfactant. The best magnetic hysteresis properties were obtained with samples milled in ethanol with 1% stearic acid.