Proxy vs VPN: what's the main difference?

When comparing proxy vs VPN services, it’s easy to assume they do the same thing – both can hide your IP address and help you access geo-restricted content. However, the way they work and the level of privacy, security, and performance they provide are very different.

While proxies mainly reroute your internet traffic through another server, VPNs encrypt your entire connection to protect your data from trackers, malicious hackers, and even your own internet service provider.

In this proxy vs VPN comparison, I explain the main differences between the two, including how they work, their advantages and limitations, and which option is better for you.

VPN vs proxy

VPNs and proxies mask your IP address to keep your identity protected while you’re online. So, whether you’re surfing the Internet, checking your emails, going on social media, streaming videos, playing games online, or downloading files and photos, you can use a VPN or a proxy server to keep your activity private.

But both of these tools work in very different ways. You see, a VPN also offers sophisticated encryption to give you complete anonymity while you’re online. In addition, it works at the system level, which means that once the VPN is activated, your entire traffic is encrypted and routed through a different IP address, from your browser to all your applications.

Meanwhile, a proxy only affords you a basic level of privacy. It only changes your real IP address without encrypting the traffic. A proxy also works only at the app level.

Main differences between a proxy and a VPN

Because proxies and VPNs mask your IP address by connecting you to a remote computer, a lot of people believe that VPNs and proxies are the same thing.

Here are the main differences between VPNs and proxy servers:

	VPNs	Proxies
Encrypt your traffic	✅ Yes	❌ No
Works on the operating system level	✅ Yes	❌ No
Free to use	❌ No (usually)	✅ Yes (usually)
Reliable connection	✅ Yes	❌ Not always
Good speeds	✅ Yes (often)	✅ Yes (usually)
Extra features	✅ Yes	❌ No

VPN and proxy: pros and cons

When it comes to VPNs vs proxies and which to choose, there are pros and cons for each option. Proxy servers are usually the cheaper and quicker choice and are really handy if all you want to do is hide your IP address. But VPNs offer much greater security by encrypting all your online traffic.

This means that only a VPN can help you protect your online activity from hackers, government agencies, and businesses that might be looking to learn more about you and how you spend your time while surfing the Internet.

But there are still loads of benefits to each option. We’ve pulled together a list of pros and cons to help you decide if you want a proxy or a VPN.

VPN pros and cons

A VPN works by creating an encrypted tunnel between you and a remote server operated by a VPN service. When you use a VPN, all your internet traffic is then routed through this tunnel. This keeps your online activity safe from hackers, third-party companies, and even government agencies.

Proxy server pros and cons

A proxy server masks your IP identity by routing traffic through a remote machine that connects you to the host server. It acts as a firewall and web filter, provides shared network connections, and caches your data to speed up common requests.

Essentially, a proxy is ideal for basic functions like anonymous web browsing, as well as managing and circumventing content restrictions. Proxies, such as Decodo, allow users to bypass content restrictions and monitoring and can (but usually won't) enable you to access geographically restricted content, like Hulu or foreign versions of Netflix.

Proxy vs VPN: which is more secure?

A VPN is a lot more secure than a proxy. While both mask your IP address, a VPN will actually encrypt all the data you send and receive. Therefore, VPNs are much better at providing online protection than proxies, which don’t offer any encryption.

All a proxy does is pass your traffic through a mediating server. So this doesn’t necessarily provide you with any additional protection. And you’ll have no way of knowing what a proxy will do with any data it collects on your online activity. But it’s possible this information could be sold to third-party companies.

It’s also worth noting that VPNs, unlike proxies, work on the operating system level to secure all your traffic, which makes them a lot safer than using a proxy.

Can I use a proxy and a VPN together?

There’s no need to use a proxy if you’ve also got a VPN. Both proxies and VPNs mask your IP identity, so there’s no reason to use them together. In fact, if you’re already using a VPN, then connecting to a website or app through a proxy server just adds an unnecessary extra step that could even slow things down without adding any additional security.

With that said, you could use both if you feel the extra step to secure your anonymity is necessary.

Proxy vs VPN: video review

Check our YouTube video if you'd like to see a visual representation of the differences between proxies vs VPNs.

Bottom line

If you’re looking at a proxy vs VPN for security reasons, the VPN is the clear winner. Its layers of encryption, along with its no-log policy, keep your online activity safe from hackers and third parties.

However, if all you want is to keep your IP address hidden, then a proxy will work just as well as a VPN. In fact, if you just want to mask your identity from a single site or app, a proxy server might be the better choice, particularly if you’re concerned about bandwidth and browsing speeds.

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Thinking of trying out a VPN service? Read one of our VPN guides or reviews

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