The advantages of magnetic fluid seals, such as low friction moment, high tightness, and high durability, have been known for many years. However, they are used particularly in air or vacuum environments and the application of this type of seal in water still remains a problem. This is mainly due to the friction occurring between the two fluids and interfacial instability. This publication focuses on investigating the influence of magnetic fluid properties on the mechanism of pressure transfer between sealing stages. The main aim was to better understand the leak mechanism in this type of seal and to be able to select ferrofluids (FFs) resistant to water for long-term operation after short-term testing. The tested seals rotated over 4.3 million times without failure. The results of the research carried out are recommendations for the selection of magnetic fluid, sealing stage width, and FF volume.