The DC thermal arc-plasma route is used successfully for the first time for the preparation of magnetite (Fe₃O₄) powders. The powder is characterized by X-ray diffraction (XRD), vibrating sample magnetometer (VSM), Mfssbauer spectroscopy and transmission electron microscopy (TEM) techniques. The size of particles increases with increasing arc-plasma current. High DC arc-current generates the spherical, stoichiometric Fe₃O₄ particles with comparable magnetic properties (Ms~88 emu/g). The arc-current and hence the oxidation rate is found to be responsible in controlling the size and stoichiometry of the Fe₃O₄ particles.