We performed computer simulations based on a two-dimensional distinct element method to study granular systems of magnetized spherical particles. We measured the angle of repose and the surface roughness of particle piles, and we studied the effect of magnetization on avalanching. We report linear dependence of both angle of repose and surface roughness on the ratio f of the magnetic dipole interaction and the gravitational force (interparticle force ratio). There is a difference in avalanche formation at small and at large interparticle force ratios. The transition is at fc≈7. For f<fc small vertical chains follow each other at short times (granular regime), while for f>fc the avalanches are typically formed by one single large particle- cluster (correlated regime). The transition is not sharp. We give plausible estimates for fc based on stability criteria.