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VPNs and proxies share similarities, but they are not the same, specifically in the security features they offer. Both make your IP address private and help you access geo-blocked content, but only VPNs provide encryption. Proxies, on the other hand, can be good for one-time use while you’re gaming or streaming, and they can help businesses direct traffic on their networks. Learn the difference between the two and their best uses.

What is a proxy?

A proxy server, or proxy, reroutes your internet connection through a remote server, replacing your IP address with that of the server and, thereby, hiding your identity and location data. This rerouting process is limited to traffic coming from one application, such as your internet browser, and not all device applications. As such, a proxy aids anonymous browsing from one app. 

Proxies can also be used by administrators or parents to block users from accessing certain content, like social media platforms or websites known to contain malware or forbidden content.

Types of proxies

Different proxies can be used for personal or business purposes. Here’s a breakdown of the main types:

  • HTTP: These proxies are set up on a browser to reroute website traffic through a server, often in a location removed from the user. They’re primarily used to access geo-restricted websites. 
  • SOCKS5: Socket Secure 5, or SOCKS5, proxies are faster than HTTP proxies. This makes them useful for file-sharing, streaming or video chats. They can be used on other application types in addition to browsers but are limited to only covering one application’s traffic.
  • Transparent: Transparent proxies are useful for businesses, schools or parents. They block users from accessing certain websites (like Facebook or TikTok) and reduce the amount of bandwidth required for multiple users. 
  • Forward: Forward proxies send requests from users to servers and hide the user’s details from the server. They’re designed for anonymous browsing and storing frequently accessed pages, helping to reduce the bandwidth required to repeatedly access them. 
  • Reverse: Businesses can use reverse proxies to control user traffic coming into their web server and hide details of the server from users. 

What is a VPN?

A virtual private network (VPN) is a digital security tool that reroutes your internet connection through a remote server. The VPN hides your IP address by replacing it with the server’s address. As with proxies, this keeps third parties from viewing your location and helps you access web content that’s restricted based on location.

Unlike proxies, VPNs encrypt your browsing information. The information appears scrambled for anyone who lacks a certain decryption key. You can use a VPN by downloading an app or using a browser extension. Paid VPN services usually offer better privacy and security features and refrain from practices such as selling your data.

Types of VPNs

Two general VPN types can help individuals or businesses securely browse the web and keep information private: 

  • Business use: Businesses rely on remote access and site-to-site VPNs to help employees connect to their business networks securely and to monitor and control user activity. Remote access VPNs help employees who work from home connect to the company VPN, while site-to-site VPNs let two partner companies connect their networks securely and control the content their partners can access.
  • Individual use: Personal VPNs provide an individual’s device(s) with data encryption, browsing anonymity and access to restricted or geo-blocked content.

Proxy vs. VPN: Key differences overview 

AVAILABLE FOR FREEHIDES IP ADDRESSESENCRYPTS WEB ACTIVITYBYPASSES GEO-BLOCKED CONTENTHIDES USER ACTIVITY ON MULTIPLE WEBSITES OR APPSREDUCES AD TRACKING
Proxy
X
X
VPN

Safety, security and privacy

VPNs offer more security and privacy than proxies. Here are some of the ways they stand out:

  • Download privacy: Third parties can’t see what you download when you use a VPN. As a result, your internet service provider (ISP) can’t limit bandwidth based on your use of high-bandwidth online activities such as streaming videos.
  • Data encryption: VPNs provide data encryption for all your web activity, not just activity on one site or application at a time.
  • Browsing privacy: Most VPN services don’t log users’ web browsing activity. Since your activity is not recorded, it can’t be handed over to government agencies requesting your browsing history.

It’s important to note that both VPN providers and proxy servers can sell your data to third parties. However, your data is less likely to be sold if you choose a paid VPN or proxy instead of a free service.

Download and upload speed

Both VPNs and proxies can slow down your internet connection, However, of the two, VPNs tend to be slower. Their advanced encryption capabilities contribute to this slowdown. However, you can take steps to  combat a slow connection while still taking advantage of a VPN’s security features by controlling the following features: 

  • Split tunneling: Split tunneling lets you pick which applications use the VPN and which ones do not. This lessens the data transmitted through your VPN, helping to speed up your connection. 
  • Server locations: Choosing a server location closer to you can prompt faster upload and download speeds. 
  • Number of servers: Paid VPNs offer hundreds of servers, often far more than free ones. Choosing a VPN with more servers helps to reduce the server congestion that slows user connections. 

When should you use a VPN or proxy?

Proxies can be a good option for businesses that want to direct and monitor user access. For an individual, a proxy can come in handy if you need private one-time access to a site. For such limited personal use, a free proxy may adequately serve your needs. 

But if you want ongoing security, no records of your browsing history and/or encryption that protects sensitive data on all your connected devices, consider paying for a reputable VPN.

Read our top VPNs guide for recommendations.

Using a VPN and proxy together 

For general use, you don’t need to use a VPN and proxy together, since VPNs do almost everything proxies do with few exceptions. Plus, using them simultaneously will slow your connection speeds. 

However, some businesses use both a VPN and a proxy for added protection against malware. While a VPN lets you visit sites while protecting your business’ sensitive data, a proxy can block employees and other users from accessing sites that may send threats in, such as those known for spreading malware.

Frequently asked questions (FAQs)

A VPN is not a proxy. Both tools hide your IP address, but VPNs offer more advanced data security features, such as data encryption. In addition, VPNs offer the ability to protect data and privacy across your device’s system, while a proxy protects your privacy and data only on one application, such as a web browser. Proxies, however, are better suited for employers, schools or parents seeking access control over certain websites.

A VPN is better than a proxy for protecting your sensitive data, devices and browsing history. Proxies, however, can be useful for businesses, since they can reduce bandwidth when multiple employees are connected through one network. Businesses also can rely on proxies to block employees’ access to websites that hinder work productivity or pose threats, such as malware infections.

If you use a proxy, you may want to switch to a VPN. In most cases, a VPN performs the same functions as a proxy, like hiding your IP address and helping you access blocked content, but VPNs provide additional security features, such as data encryption. However, if your business wants to prevent employees from accessing certain websites, a proxy can serve this function.

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Sarah Brady

BLUEPRINT

Sarah Brady is a personal finance writer and educator who's been helping individuals and entrepreneurs improve their financial wellness since 2013. Sarah's other publications include Investopedia, Experian, the National Foundation for Credit Counseling (NFCC), Credit Karma and LendingTree and her work has been syndicated by Yahoo! News and MSN. She is also a former HUD-Certified Housing Counselor and NFCC-Certified Credit Counselor.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.