This paper is on the study of flow force compensation for spool type valves. A simple method for flow force compensation using a stepped spool is presented in this paper. It is easy to manufacture the stepped spool of the presented method because the shape of it is simple. The method has another merit that the size of valve need not be increased. Actuating force required for driving the spool can be decreased through the compensation of flow force. The effect of presented method is predicted through CFD analysis. The results of the CFD analysis are also utilized for the optimization of step shape. The prototypes of flow force compensated Direct Drive Servo-Valve are manufactured, and the measurements of flow force are carried out. The measured effect of flow force compensation is very similar to that from the CFD analysis.