Fe and FePd nanowires were fabricated by electrodeposition in porous anodic aluminum oxide template. Both Fe and Fe0.95Pd0.05 nanowires have a (110) preferred orientation with a diameter of 60nm . This diameter is suitable f or investigating the behavior of traced Pd in FePd nanowire. With the traced Pd alloying in Fe nanowire, the crystalline anisotropy overpowers the shape anisotr opy, changing the magnetic domain structure and increasing the pinning of domain wall. Thus the Fe0.95Pd0.05 nanowire shows a str ong parallel-to-the-wire anisotropy with improved squareness and coercivity.