The effect of magnetic compound fluid (MCF) slurry on the gallium arsenide (GaAs) wafer surface after nano-precision polishing was investigated. MCF slurry was prepared by mixing CS carbonyl iron particles (CIPs), Al₂O₃ abrasive particles, α-cellulose, and magnetic fluid. Firstly, a polishing device was assembled by designing MCF unit for the generation of revolving magnetic field. Then, the spot polishing experiments were performed on GaAs wafer surface to clarify the effects of MCF components on the surface roughness R_a and material removal (MR) at different polishing positions. Finally, the scanning polishing experiments were conducted using water-based MCF slurry containing particles with different diameters. Results show that after spot polishing with water-based and oil-based MCFs, the initial surface roughness R_a of 954.07 nm decreases to 1.02 and 20.06 nm, respectively. Additionally, the depth of MR is increased linearly with prolonging the polishing time. It is worth noting that the MR depth of surface after polishing with water-based MCF is 2.5 times higher than that with oil-based MCF. Meanwhile, the cross-section profile of the polished zone shows the W shape, which indicates the non-uniform MR on the workpiece surface after spot polishing. After scanning polishing, the cross-section profile of the polished zone shows the U shape, which indicates that MR is uniform under specific experiment conditions, regardless of the MCF types. The smoothest work surface with R_a=0.82 nm is achieved using MCF with abrasive particles of 0.3 μm in diameter, and MR rate is 13.5 μm/h.