Many applications require galvanic isolation between the circuit where the current is flowing and the measurement device. While for AC, the current transformer is the method of choice, in DC and, especially for low currents, other sensing methods must be used. This paper aims to provide a practical method of improving the sensitivity and linearity of a giant magnetoresistance (GMR)-based current sensor by adapting a set of design rules and methods easy to be implemented. Our approach utilizes a multi-trace current trace and a double differential GMR based detection system. This essentially constitutes a planar coil which would effectively increase the usable magnetic field detected by the GMR sensor. An analytical model is developed for calculating the magnetic field generated by the current in the GMR sensing area which showed a significant increase in sensitivity up to 13 times compared with a single biased sensor. The experimental setup can measure both DC and AC currents between 2–300 mA, with a sensitivity between 15.62 to 23.19 mV/mA, for biasing fields between 4 to 8 Oe with a detection limit of 100 μA in DC and 100 to 300 μA in AC from 10 Hz to 50 kHz. Because of the double differential setup, the detection system has a high immunity to external magnetic fields and a temperature drift of the offset of about −2.59 × 10−4 A/°C. Finally, this setup was adapted for detection of magnetic nanoparticles (MNPs) which can be used to label biomolecules in lab-on-a-chip applications and preliminary results are reported.