In this paper we study the low‐lying energy levels of Co2+and Fe2+in diluted magnetic semiconductors, such as Cd1−xCoxTe and Cd1−xCoxSe, and their iron‐based counterparts. In the first of these compounds, the magnetic ion sits on a site of symmetryTd, while in the second the symmetry is trigonal (C3v). We develop a formulation that permits a continuous variation fromTdtoC3vsymmetry. Comparison with experimental data in Cd1−xCoxSe shows that theC3vdistortion amounts to about 10% of the crystal potential at the Co2+site. Our study of the energy spectra of Fe2+inTdandC3vcrystal potentials reveals that, even in the cubic field, the levels exhibit an anisotropy which manifests itself in an anisotropy of the magnetizationMin the regime in whichMis not a linear function of the magnetic fieldB. The study includes all the levels in the lowest terms of the (3d)7and (3d)6configurations of Co2+and Fe2+, thus considerably extending work by previous authors. The calculations are carried out to second order in the spin‐orbit interaction and inBfor the lowest orbital states, and to first order inBfor the excited states. Thegfactors of all the levels are obtained including their anisotropy for the Co2+&Ggr;8states.