Two hands are holding a shield each; one says VPN, and the other Proxy. An IP address hangs over the hands, and the numbers of the address are obscure on the VPN side; while they are readable on the Proxy side.

A proxy server and a VPN (Virtual Private Network) are the most common solutions to improve privacy — both change your IP (Internet Protocol) address. The main difference between a VPN and a proxy is that one encrypts your traffic while the other (typically) doesn’t. However, figuring out which may be better for you requires understanding the fundamentals of each. So, let’s get into the nitty-gritty.

Table of contents

    What is a proxy server? 

    A proxy server, in simple terms, is an intermediary between you and the internet. It is a computer that hosts a server, which reroutes incoming data and gives you a different IP address.

    Connecting to proxy servers makes it seem like you’re connecting from the proxy server’s location, providing some level of privacy. But that’s not all — there are many proxy types that have different functions and are used for different purposes.

    Types of proxy servers

    • HTTP proxy server: a simple proxy server that routes your web browser’s traffic — it forwards your web request to the server and sends the server’s response back to you;
    • SOCKS5 proxy server: a more powerful proxy server that works on a deeper operating system layer. It’s also considered to be better at penetrating blocks. Together with your browser data traffic, it reroutes the data of apps that use this proxy;
    • Transparent proxy server: a proxy server that allows certain restrictions to be placed on a network. It’s mainly used by employers, schools, hotels, and public Wi-Fi hosts to limit access to certain websites or monitor internet use; 
    • Forward proxy server: a proxy server that examines any requests over the network before allowing them to go through. Once it allows passage, it forwards the data. It’s mainly used for internal networks;
    • Anonymous proxy server: a proxy server, sometimes called an anonymizer, that focuses on making you anonymous online. It accesses the internet for the user to hide any personal information;
    • High-anonymity proxy server: an HTTP proxy server that builds upon an anonymous proxy and erases any information gathered on the device before connecting to websites. Sometimes, it’s referred to as an elite proxy;
    • Distorting proxy server: a proxy server that hides from the websites it accesses by pretending it has a different IP address. This masks your identity as well as the proxy itself; 
    • Datacenter proxy server: a proxy server that exists somewhere in a data center. This usually makes the proxy server provide faster results; 
    • Residential proxy server: a proxy server that gives you an IP address tied to a physical device. Any information requested through this proxy is routed via the same physical device; 
    • Public proxy server: a free proxy server that is accessible to anyone. This option provides many users with access to its IP addresses. However, this also means it is a lot slower than the other choices;
    • Shared proxy server: a proxy server available to several select users simultaneously, giving them the same IP. It’s usually cheaper than most proxies as the costs are divided between everyone using it.

    What is a VPN?

    A VPN is a service that encrypts your traffic and routes it through a secure VPN server, hiding your IP address. It sounds similar to a proxy, but here’s what’s actually happening:

    You run a VPN app. It creates a secure and encrypted connection tunnel between your device and the VPN server. All your internet traffic is routed through this tunnel, where all the data gets encrypted, and a new IP address is assigned.

    The encrypted data then leaves the VPN server and reaches its intended destination at the other end of the tunnel. This way, a VPN allows for safe and uninterrupted communication between you and the intended recipient.

    The differences between VPNs and proxies

    In short, the main difference is that VPNs do everything that proxies do (and then some) but better. But let’s take a deeper look at how they differ.

    Security

    The key difference is encryption — while VPNs encrypt all your traffic, many proxy servers don’t offer it at all, leaving your data exposed. Because of VPN encryption, it’s far more difficult for anyone to access or monitor your data, making VPNs the superior option for security.

    An infographic shows how your data stream is treated when you use a proxy and a VPN.

    Privacy and anonymity

    Both proxy servers and VPNs change your IP address. However, cybersecurity is more than just hiding your IP. Most proxies only handle your browser’s traffic, meaning other apps (like Google Maps) still expose your real data. So, if someone were to identify you, they could easily do it by checking the data traffic transmitted by your apps connected to the web.

    On the other hand, VPNs cover all your device’s traffic, providing overall privacy. Plus, with a VPN connection, your ISP (Internet Service Provider) won’t know what you’re downloading, meaning it can’t collect data on your downloads.

    Speed

    VPNs also have an advantage over proxies when you’re engaging in bandwidth-consuming activities, such as streaming or downloading files. With the VPN on, your ISP cannot see what you’re doing online, so they can’t engage in bandwidth throttling. Since proxies don’t offer the same privacy, your ISP may place bandwidth restrictions and slow down your connection.

    Compatibility

    Most proxies can only handle data from your browser, leaving any other apps connected to the internet unprotected. VPNs, however, route all online traffic on your devices — apps included — through an encrypted tunnel, making them a more compatible and comprehensive security tool.

    VPN
    Proxy
    IP address masking
    Data encryption
    /*
    Entire system protection
    ISP tracking prevention
    Public Wi-Fi threat protection

    *Only HTTPS proxies

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    What is better: a VPN or a proxy?

    In most cases, a VPN is better. For example, you want to change your IP address, bypass restrictive firewalls, keep yourself anonymous, and stay safe on the web. In that case, a VPN offers more features and higher security levels than a simple IP-changing proxy server.

    However, if you are an employer looking to monitor internet use through company devices, proxies, like a transparent one, might be a better choice.

    The bottom line: in VPN vs. proxy server, the VPN wins

    Despite VPNs and proxies working on similar principles, one of the technologies is undoubtedly more sophisticated and powerful. So, when it comes down to functionality, VPNs easily win the proxy vs. VPN fight. Now, how about you try a VPN yourself?

    Experience the benefits of a VPN
    Stay secure & protect your privacy
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    FAQ

    Is a VPN the same as a proxy server?

    No. Although the two services may work similarly, they are still two different products with different use cases. In short, a VPN is a much more sophisticated and powerful service than a proxy. So, while a virtual private network can replace a proxy, a proxy cannot replace a VPN. 

    Should I use a proxy and a VPN?  

    Not necessarily. If you’re using a VPN, you do not need a proxy. However, if you need to use a proxy (for work or school, for example), it’s best to invest in a good VPN provider as well.

    Is it cheaper to use a VPN or a proxy?

    In most cases, a VPN is more expensive than a proxy because it has more features, and its server infrastructure is harder to maintain, while many proxies are free to use.

    Whatever you choose, you shouldn’t go free. Many free proxy servers (as well as free VPNs) are known to collect and sell your data to third parties. Remember — if you’re not paying for the product, you are the product.

    Can I use a VPN and a proxy together?

    Yes, you can use a VPN and a proxy together, but it may be better not to. When you run a proxy and VPN simultaneously, your data traffic is redirected through the proxy servers and those of a VPN. So, using both of them together will reduce your speed.

    How do I know if I have a VPN or proxy?

    • Check your network settings — a VPN will be listed under your VPN settings, and a proxy will appear in the Proxy settings;
    • Go to your browser settings and see if a VPN extension is installed or a proxy is configured;
    • Look for proxy management tools or VPN software on your device.