Proxy vs. VPN: Which One Should You Use?

A virtual private network -- VPN -- and a proxy both mask your IP address, providing privacy protection. But the main difference between a VPN and a proxy is that VPNs offer an encrypted connection for enhanced privacy and security. For streaming geographically restricted content and general web browsing, either should work. However, a VPN is better in situations where privacy is paramount. Let’s explore a proxy and VPN, from their similarities and differences to which one you should use. 

What is a VPN?

A virtual private network is a privacy tool that hides your IP address by sending your internet traffic through a remote server. Rather than viewing your public IP address, apps you use and websites you visit instead see the IP address of the VPN server you’re connected to. For instance, if I’m in New York, US, but tunneling through a London, UK, server with ExpressVPN, Disney Plus thinks I’m across the pond.

What is a proxy server?

Like a VPN, a proxy is a bridge between your device and the internet. When you use a proxy, websites you visit view your proxy server’s IP address rather than your own. It’s similar to a VPN because both are middlemen connecting you to websites or apps. But because proxies don’t use encryption, whereas VPNs do, you miss out on privacy benefits. 

The main difference between proxies and VPNs is encryption

A VPN and a proxy each mask your IP address by sending your internet traffic through a server first and then on to its final destination. You can think of a proxy as a tunnel and a VPN as a tunnel behind a toll road. Either option gets you to your destination without being seen, but a VPN adds another layer of privacy and security, whereas a proxy’s protection isn’t as comprehensive. 

When you use an internet-connected service, like visiting a website or streaming a movie on an app like Netflix, your device “talks” with that platform and exchanges information such as your public IP address. Your IP address includes data such as your internet service provider and general geographical location. However, when you use a VPN, proxy or both, your public IP address is hidden and apps or websites instead see the IP address of the server you’re tunneling through.   

Proxy servers vs. VPNs compared

The primary difference between a VPN and a proxy is that virtual private networks provide a private, encrypted connection while proxies don’t. Here’s how proxy servers and VPNs vary.

Privacy and security: VPNs are better for privacy because of their encryption

Although proxy servers and VPNs hide your IP address, only virtual private networks encrypt your data, meaning a VPN is significantly better for privacy. VPNs use different types of encryption based on the protocol -- WireGuard normally uses ChaCha20 encryption while OpenVPN and IKEv2 rely on AES-256-bit encryption. 

If you want to stream the occasional video or browse the web with minor privacy, you'll be fine using a proxy server. But VPNs are better for anyone with moderate to strict privacy concerns -- whether that’s reliably unblocking foreign Netflix libraries, bypassing throttling restrictions or circumventing censorship. 

Ease of use: VPNs are generally more user-friendly than proxies

Generally, VPNs are more intuitive to set up than proxy servers. Connecting to a proxy usually requires going into your device's network settings and entering information using a setup script or a configuration file. Some smart DNS proxies, like SmartDNS -- which I’ve used in the past for streaming -- connect you through a proxy using your DNS settings. 

On the other hand, most VPNs let you download an app, sign in and hop on a server, which is much simpler than fussing with your operating system or device settings. If you’re a Linux user, installing a VPN may be more complicated than on other platforms. Likewise, some devices like game consoles, including the Xbox Series X/S and PlayStation 5, don’t natively support VPNs. But a proxy won’t be meaningfully easier to configure on Linux or devices that don’t support native VPN apps, like game consoles. 

Speed test: A proxy may be faster, but VPNs aren’t necessarily slow

On paper, a proxy server is faster than a VPN because it doesn’t encrypt your data. However, in my experience, there’s minimal difference in speed loss with a reliable VPN. All proxy servers and VPNs usually slow down your internet compared to a raw internet connection because your data gets rerouted through a server. 

Since proxies lack encryption, their speeds may be marginally faster than VPNs in some instances -- although free proxies can be slow because they may have lots of people overburdening servers. But in my testing, the fastest VPNs, including NordVPN, Mullvad and Surfshark, only caused an average internet download speed loss of under 20%, which is mostly unnoticeable on a solid internet connection (think 50Mbps or greater). The encryption -- and therefore privacy -- benefits of VPNS far outweigh any slight speed loss. 

Streaming performance: A proxy or VPN will let you stream geo-protected content with ease

Because either a VPN or proxy masks your IP address, both unblock geographically protected content, like foreign Netflix libraries. A proxy could deliver slightly faster speeds than a VPN because it doesn’t encrypt your connection. However, in my benchmarking, some of the fastest VPNs only dropped my internet download speeds by an average of 15% or less. A solid VPN will only marginally reduce your speeds for streaming. 

Thanks to the simple installation of a native VPN app, you can switch servers more easily than with the average proxy, making VPNs better for region-restricted content unblocking. Overall, I’ve found VPNs more user-friendly -- and reliable -- for streaming movies and TV shows.

Cost and value: A VPN and a proxy can both be pretty cost-effective, but VPNs are more versatile

There’s little difference in price between a proxy and a VPN; both services are available from around $5 to $15 a month or $40 to over $100 per year. But the average VPN is more versatile than a proxy server and therefore offers additional value. For starters, virtual private networks deliver encryption for privacy benefits, whereas most proxies don’t. Moreover, VPNs are normally easier to install. Plus, many VPNs offer additional features, such as specialty servers that combine Tor with a VPN or use two VPNs for extra encryption. 

A reliable paid proxy may be faster than a VPN because it lacks encryption, which can slow your data down more than an unencrypted connection. Proxy servers also work well for simple IP address masking on devices that don’t support native VPN apps, like game consoles or Rokus. But the extra features that most virtual private networks bundle make them more value-packed than the average proxy. 

You can use a proxy and a VPN at the same time

While you can use a VPN or a proxy, you can use both simultaneously. For instance, Private Internet Access offers a Shadowsocks SOCKS5 proxy complete with encryption. You can set up its proxy standalone or use it from within the PIA app as a double-hop, or multihop connection; your data gets encrypted twice rather than once in this case. Likewise, NordVPN provides a proxy server for torrenting, although it doesn’t have encryption. 

VPN vs. Proxy: Bottom Line

Ultimately, VPNs are all-around better than proxies, offering enhanced privacy, intuitive setup and a greater feature set, like specialty servers such as Tor Over VPN options. A proxy server may be faster than a VPN because it doesn’t encrypt your connection, but in my testing, the most reliable virtual private networks only resulted in negligible internet speed loss. For most situations, like travel, streaming and beefing up your privacy, a VPN is the right choice. But for basic IP address masking or use on a device that doesn’t support native VPN apps -- like a game console -- a proxy server could be a decent alternative.