VPN vs. Proxy: What’s the Difference and Which One Should You Use?

Virtual private networks (VPNs) and proxies can both hide your IP address, but VPNs also encrypt your traffic, offering better security and privacy.

This doesn’t mean you’ll never have a reason to use a proxy; it just means you need to weigh the pros and cons of each tool before deciding which one to use. 

Read on to learn everything you need to know about the difference between a VPN and a proxy, including how to determine which one is right for you.

What Is a VPN?

A VPN is a cybersecurity tool that increases your privacy online. When you connect to a VPN, it hides your IP address and routes your traffic through a secure server in another location, which makes it look like you’re browsing from that location. The VPN also scrambles your internet traffic using strong encryption, making it unreadable to anyone spying on your connection. 

Think of a VPN like a secure tunnel that protects your data (like your location or the websites you visit) from being intercepted or seen when passing through the open internet.

Depending on your VPN provider, it may offer some or all of the following security and privacy features:

• A kill switch to prevent data leaks and potential tracking
• DNS/IP leak protection to avoid exposing your true location
• Military-grade 256-bit AES encryption 
• Auto-connection for unsecured networks
• Ad and malware blocking
• Obfuscation that makes VPN traffic appear to be normal internet activity

What Is a Proxy Server?

A proxy server is a system that acts as an intermediary between your device and the websites you visit. While it can hide your IP address like a VPN, it doesn’t secure your entire internet connection.

Proxies route your traffic through a remote server, masking your IP address and making it look like you’re browsing from a different location. However, they rarely offer encryption and usually work only in your browser. 

Depending on your provider and proxy type, it may provide the following extras:

• Secure Socket Layer (SSL) encryption to mask your traffic
• A private IP address to browse the web free of location tracking
• Compatibility with different apps

Types of Proxy Server

Proxy connections handle traffic differently depending on the type of proxy you use. Let’s take a look at the key types of proxies often used in place of VPNs:

HTTP Proxy

If you use a proxy at home, 9 times out of 10, it’s an HTTP proxy. This type of proxy is used for unencrypted browser-specific traffic, which means it doesn’t work with HTTPS websites (like your online banking portal, for example) without specific modifications that turn it into an HTTPS proxy. With this proxy, everything you send through it is visible to the proxy owner (or anyone else who may be spying on your connection).

HTTPS Proxy

Similar to an HTTP proxy, an HTTPS proxy is designed to handle web traffic, but it offers much more privacy. In its most basic configuration, it just forwards your encrypted web traffic to the destination server. This means it can only see what site or domain you’re connecting to, so it can’t read any data you send to or receive from web pages.

However, it can also be configured for SSL/TLS interception, which means it decrypts and reads your data before re-encrypting it and sending it on to the destination server. This can be useful for companies that want to check for malware or block specific resources, but in terms of privacy, it’s no better than an HTTP proxy. 

SOCKS5 Proxy

A SOCKS5 proxy can handle all types of web traffic, which means you can use it with email, messaging, and other apps. It can also add authentication methods, including a username and password login, making it more secure but slower than an HTTP proxy. Even though it works on non-browser traffic, you still need to set it up separately on each app you want to use it with. 

Transparent Proxy

A transparent proxy doesn’t mask your IP address, and you generally don’t know when you’re using one. This type of proxy is often set up by employers who want to monitor your online activity or block access to specific websites and content during work hours. Public venues like restaurants and hotels also use them to authenticate guests on their Wi-Fi networks.

Similarities and Differences: VPN vs. Proxy Server

Key Similarities

VPNs and proxy servers both mask your IP address, making it difficult for websites and online services to determine your location. This can help you access region-specific accounts (e.g., work resources, banking, etc.), which can be especially useful while traveling abroad. 

Key Differences

The main difference between a VPN and a proxy is privacy. A VPN connection secures your network traffic with strong encryption, making it unreadable to your ISP or any other third parties watching your internet traffic. This is particularly important when you’re connected to unsecured Wi-Fi networks, which can be an easy target for cybercrooks looking to steal your account passwords, financial data, or other personal information.

A proxy can read all the data you send through it, posing a significant privacy risk, but a good quality VPN will have a no-logs policy that guarantees it won’t monitor or store your browsing data. PIA VPN uses RAM-only servers which automatically delete your browsing data every time we reboot them – which we do on a regular basis.

Some proxies offer encryption, but they can still expose your online activity via your DNS requests. A VPN encrypts your DNS requests to prevent anyone snooping on your connection from seeing what you’re doing online.

Another important difference is that a VPN works with every app on your device, while a proxy only works on a per-app basis – usually your browser.

Factors to Consider When Choosing a VPN vs. a Proxy Server

The right service will depend on your needs, including the task you want to perform online, the level of security you want, speed requirements, and other considerations. Here are the factors you should consider when choosing which service you need: 

Privacy

In addition to being able to read your data themselves, proxies often cache data to load frequently visited pages faster and save bandwidth. Your information, including sensitive information you enter on websites, can sit in this cache indefinitely. This huge pool of readily available information is a goldmine for cybercriminals. 

A trustworthy VPN is a much better choice, as it will have a no-logs policy, which means it won’t collect, store, or share your browsing information with anyone. 

Security

A VPN provides more security than a proxy because it shields your data with strong encryption to make your traffic unreadable. This means even if the traffic is intercepted by a third party, there would be no way to decipher or extract personal information from the encrypted data.  

Most proxies – especially free ones – don’t encrypt traffic, putting your security at risk. While paid proxy services may offer encryption, those that do are generally more expensive and may still read – and potentially store – your data. Even if they don’t intentionally expose it to others, it could be the target of a cyberattack. 

Compatibility

A proxy can provide location anonymity, but only at the application level. This means you have to set it up for every app you want to use it with. It also may need to be manually configured every time you connect to a new network. 

A VPN doesn’t require manual configuration and will cover all your device’s internet traffic. It works on any network and allows you to connect or disconnect in a couple of clicks. 

Ease of Use

VPNs require less technical know-how than proxies – most VPNs have user-friendly apps that make switching servers and changing your IP address simple.

Proxy apps often require manual configuration. Many don’t let you choose your location, and those that do usually involve more time-consuming setup. Without technical knowledge, configuring and maintaining a proxy can be challenging.

Let’s compare the basic process of installing and using a VPN to change your IP address vs. connecting to a proxy server.

How to Set Up and Use a VPN

Step 1: Subscribe to a VPN service and download the VPN app.
Step 2: Launch the app and log in.
Step 3: Connect to a server anywhere you choose. That’s it!

How to Set up and Use a Proxy

Manual Proxy Installation
Android	Settings > Connections > Wi-Fi > Select network > Advanced > Proxy > Manual > Enter proxy details (Steps may vary slightly by device and brand)
iOS	Settings > Wi-Fi > Select network > HTTP Proxy > Manual > Enter proxy details
Windows	Settings > Network & Internet > Proxy > Manual proxy setup > Enable Use a proxy server > Enter proxy details
macOS	System Settings > Network > Select network > Details > Proxies > Select the type and enter proxy details (Steps may vary slightly by macOS)

After setup, if you want to use a different proxy IP address, you need to create a new connection or edit the previous proxy details with the new server information. 

Speed

The VPN encryption process can slow your connection, but you’ll barely notice a difference if you use a reliable service with high-speed servers. A proxy may provide better speeds, but at the expense of important security and privacy features. 

Both tools may experience speed fluctuations due to traffic loads, network configuration, and server availability. 

To get the best speeds possible, look for a proxy or VPN with servers nearby. Proxies generally have much smaller networks than VPNs and don’t often disclose their exact server locations, making it hard to find one where you want one. 

P2P File Sharing

In the case of a proxy vs. a VPN for torrenting, only a VPN has privacy protection that prevents third-party monitoring, making it a safer choice. A VPN prevents your ISP and anyone else from tracking your downloads and viewing your online activity – something a proxy can’t do. 

It’s important to choose the right VPN, though. Not all VPNs allow P2P connections, and some only allow it on select servers. PIA VPN supports P2P file sharing on all its servers.

Cost

Many proxies are free, while VPNs generally cost a little money. You can get a free VPN, but they often have limitations like slow speeds, data caps, and even weak security. 

A proxy might be a good fit if you need something free for a one-time use and privacy isn’t a priority for the task at hand. That said, not all free proxy providers are trustworthy – some may log sensitive data, so it’s best to do your research on the provider before trying one or choose a trustworthy, low-cost VPN instead. 

Final Verdict

Proxy services can be useful when you need another IP address, especially if it’s a one-and-done situation that doesn’t require much privacy (like streaming). That said, a VPN is a far more comprehensive, long-term solution that offers stronger privacy protection as well as a new virtual location.

Whatever your need, PIA VPN has you covered. The VPN secures your data with strong encryption, and our large server network allows you to choose from 90+ countries worldwide. You’ll get a connection fast enough for any task and easy-to-use apps for major devices, all at an affordable price.

You can buy PIA VPN risk-free with a 30-day money-back guarantee.

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