Monte Carlo simulations were employed to study the characteristics of the electron beams of a clinical linear accelerator in the presence of 1.5 and 3.0 T transverse magnetic fields and to assess the possibility of using magnetic fields in conjunction with modulated electron radiation therapy (MERT). The starting depth of the magnetic field was varied over several centimetres. It was found that peak doses of as much as 2.7 times the surface dose could be achieved with a 1.5 T magnetic field. The magnetic field was shown to reduce the 80% and 20% dose drop-off distance by 50% to 80%. The distance between the 80% dose levels of the pseudo-Bragg peak induced by the magnetic field was found to be extremely narrow, generally less than 1 cm. However, by modulating the energy and intensity of the electron fields while simultaneously moving the magnetic field, a homogeneous dose distribution with low surface dose and a sharp dose fall-off was generated. Heterogeneities are shown to change the effective range of the electron beams, but not eliminate the advantages of a sharp depth dose drop-off or high peak-to-surface dose ratio. This suggests the applicability of MERT with magnetic fields in heterogeneous media. The results of this study demonstrate the ability to use magnetic fields in MERT to produce highly desirable dose distributions.