We propose a novel liquid-core waveguide using water-based ferrofluids as the guiding layer in a symmetrical metal-cladding waveguide structure to investigate the magneto-optical effect of extremely dilute ferrofluids. Owing to the high sensitivity of the ultra-high-order modes, the reflection intensity can be effectively tuned even by a weak magnetic field and the modulated reflectivity exhibits no threshold behavior. Furthermore, by properly adjusting the transmission axes of the polarizer, the detected laser intensity can be magnetic-field independent because the refractive indices for ordinary and extraordinary rays vary oppositely under the external field.