A STT-RAM MTJ is disclosed with a MgO tunnel barrier formed by natural oxidation and containing an oxygen surfactant layer to form a more uniform MgO layer and lower breakdown distribution percent. A CoFeB/NCC/CoFeB composite free layer with a middle nanocurrent channel layer minimizes Jc0 while enabling thermal stability, write voltage, read voltage, and Hc values that satisfy 64 Mb design requirements. The NCC layer has RM grains in an insulator matrix where R is Co, Fe, or Ni, and M is a metal such as Si or Al. NCC thickness is maintained around the minimum RM grain size to avoid RM granules not having sufficient diameter to bridge the distance between upper and lower CoFeB layers. A second NCC layer and third CoFeB layer may be included in the free layer or a second NCC layer may be inserted below the Ru capping layer.