Abstract: The present invention provides an amorphous or amorphous/microcrystalline metal alloy comprising Fe.sub.a Cr.sub.b V.sub.c P.sub.d Si.sub.e C.sub.f M.sub.g X.sub.h wherein M is selected from the group consisting of Cu, Ni, and mixtures thereof; X is selected from the group consisting of Mo, W, and mixtures thereof; a is about 66 to about 80; b is about 0.5 to about 5.0; c is about 0.5 to about 5.0; d is about 7.0 to about 13.0; e is about 0.2 to about 3.0; f is about 4.5 to about 8.0; g is about 0.1 to about 0.9; h is about 0.1 to about 3.0; and a, b, c, d, e, f, g, and h represent atomic percent where the total is nominally equal to 100 atomic percent. Such metal alloys have desirable magnetic properties such as high saturation induction, low coercivity and high normal permeability. Significantly cost-effective methods of producing such alloys using by-product ferrophosphorus from phosphorus production and impure sources of alloying elements are also provided.