We investigate the growth mode and the magnetism of Ni on Cu͑110͒ substrates using oxygen as a surfactant. Layer by layer growth on oxidized Cu͑110͒ is obtained, in contrast to the island growth found on clean Cu͑110͒ substrates. The main emphasis of our work addresses the potential of optical spectroscopy for analyzing structure and magnetism. For that purpose we use a spectrometer which allows us to record reflectance anisotropy ͑RAS͒ and magneto-optic Kerr ͑MOKE͒ spectra simultaneously and in situ during film growth, in the spectral range from 0.72 to 6.5 eV. We show that RAS is very useful for monitoring the growth of Ni on Cu͑110͒, since it reveals information on the atomic surface structure and on the strain evolution during the growth process. MOKE, on the other hand, is sensitive to the magnetic properties of the epitaxial Ni film. Combining RAS and MOKE thus allows us to directly relate growth mode and magnetic properties and to identify correlations in between. As such, an out-of-plane magnetization for Ni films between 7.5 and 35 ML thickness is observed, correlated with a flat layer morphology, i.e., two-dimensional growth mode of the Ni film. Above 35 ML roughening sets in and the magnetization direction rotates towards in-plane orientation again. Well below 35 ML, between 14 ML and 18 ML of Ni, the strain due to pseudomorphic growth is relaxed, correlated with a strong increase in coercivity due to dislocation formation. Mandatory for a meaningful analysis of the Voigt parameter of Ni is the sophisticated optical modeling of the layer system. Doing so, we prove that a modification of electronic properties ͑d-band narrowing͒ of the Ni film in the pseudomorphic growth regime does not occur, in contrast to expectations.