When it comes to online privacy, you have three main options: connecting to the internet through a VPN server, a proxy server or via the Tor network. Each tool hides your public IP address from websites and apps, but there are other privacy considerations you’ll need to think about when using each one, such as the level of encryption used, internet speeds and traffic logging. Let’s explore how VPNs, proxies and Tor work so you can decide which one is best for you.
What is a VPN?
A virtual private network, or VPN, routes your internet traffic through an encrypted tunnel to a server operated by your VPN provider. That server hides your public IP address so websites and apps you connect to will see the VPN server’s IP address instead of yours.
All of your data is encrypted while it passes through the VPN tunnel, meaning nobody observing the traffic between your device and the VPN server can read it. In turn, that keeps your ISP from monitoring what you’re doing on the internet. Additionally, a VPN can make apps and sites think you’re in a different location, like another city, state or country, depending on the server you’re connected to.
VPN providers typically offer apps for computers, mobile devices and streaming devices or smart TVs. These apps let you manage core VPN settings, allowing you to easily change aspects of the connection, such as which server you’re connected to or which protocol you’re using to connect.
What is a proxy server?
Like a VPN, a proxy bridges the connection between your device and the internet. When you use a proxy, websites you visit will view your proxy server’s IP instead of your own. However, a proxy doesn’t offer by-default encryption the same way a VPN does, meaning you get the same location-changing capabilities but lose out on privacy protections.
Connecting to a proxy server requires the IP of that server plus an optional set of credentials. You usually have to handle all of the configuration for connecting to it by yourself, either directly in your device’s network settings or through your browser settings. Changing location typically requires you to keep a list of multiple proxy IPs that must be swapped out by hand, which is nowhere near as convenient as a VPN.
What is Tor?
The Brave web browser's private window with Tor makes connecting to the Tor network easy.
Tor, or The Onion Routing, is free and open-source software that encrypts your internet traffic and sends it through a network of servers run by other Tor users. Instead of relying on a single point of authority (your VPN company’s servers) to route traffic like a VPN does, Tor relies on thousands of volunteers to route online data, which is broken up into segments called packets, over various paths through the network. Because these packets are sent over different paths, it stops any one user from knowing the full route between a user and the site they’re connecting to.
Tor achieves this using a technique called onion routing. Each transmission you send is encapsulated in several layers of encryption in the same way the core of an onion is surrounded by many layers. Your online data is fully encrypted at the start, then, as it passes from node to node inside the Tor network, a layer of the encryption is “peeled away” until the message reaches an exit node, where the final layer is removed and the data is sent to the rest of the internet.
VPN vs. Proxy vs. Tor compared
We’ve broken down the key factors of VPNs, proxies and Tor to see where each one shines.
Privacy and security: Tor offers strong pseudo-anonymity that only some VPN providers can match
Tor has been designed from the ground up with pseudo-anonymity in mind -- nothing is truly anonymous, but Tor goes to great lengths to separate your online activity from your device and public IP address. It uses a decentralized, multi-node system that’s built to resist surveillance through traffic analysis. Trying to follow traffic through the Tor network is extremely difficult because each node only knows the most recent sender and the next recipient of any given packet.
However, the decentralized nature of Tor comes with some downsides. The exit node for your transmission needs to send that packet to the rest of the internet in the same form it was in before it entered the Tor network. If you’re only relying on Tor for encryption and aren’t using additional encryption to communicate with a website, such as transport layer security or secure sockets layer, the exit node could potentially read your traffic. Luckily, many modern websites and apps use encryption.
While this is also true for a VPN provider, there’s a different risk profile. When you use a VPN, you’re trusting a single authority (your VPN company) to route your traffic with encryption instead of independently run servers, as is the case with Tor. Ideally, this would be a VPN provider that has a thorough no-logs policy that’s been audited by a reputable third party.
Proxies typically don’t encrypt your data, so they offer the weakest protection against surveillance. Using one is acceptable if the data you’re sending isn’t particularly sensitive. Say, for instance, you’re running an e-commerce business and want to see how your site renders in a foreign country. Loading a proxy onto your browser allows you to instantly change the location you’re accessing the internet from, and therefore to see how your site looks in different regions. You should also be fine using a proxy to unblock region-restricted streaming content, which normally isn't too privacy-sensitive.
Speed: Proxies are fastest on paper, but VPNs aren’t that far behind
A proxy server should be faster than connecting through a VPN network or Tor, but that’s typically only true of paid proxies, not free proxy servers. Both VPNs and Tor incur a bandwidth penalty by requiring some overhead for encryption. In contrast, a proxy server doesn’t encrypt anything, so all of your bandwidth is being used on your actual internet traffic.
Unfortunately, you’re likely to find that most free proxies are kind of slow. While VPNs are theoretically slower, the quality of the server infrastructure you’re connecting through matters a lot. Top-tier VPN providers like ExpressVPN and NordVPN are constantly upgrading their server networks to provide high-speed connections to more of their customers. In our testing, we found that the fastest VPNs kept internet speed loss to a maximum of 25% or less, which may be virtually unnoticeable on a fast internet connection (think cable or fiber).
Whether you choose a proxy or a VPN, both are practically guaranteed to be faster than Tor, which isn’t built for speed. Routing your traffic through additional servers is hugely inefficient and will slow your bandwidth down compared to a direct connection, but that’s the price you pay for pseudo-anonymous communication.
Ease of Use: VPNs are the most user-friendly option
Generally, VPNs are more intuitive to set up than proxy servers or Tor. The best VPN providers offer apps that allow you to sign in and instantly hop on a server, whether you’re on a computer, mobile device or streaming device.
By comparison, installing a proxy typically means opening up either your browser’s settings or messing around with your device’s network settings. Setting up a proxy isn’t supremely difficult, but it does require a bit more effort and familiarity with networking concepts than configuring a VPN.
As for Tor, you can either run your own Tor service on your device or connect straight through the Tor Browser. The Tor Browser is a lot less complicated, as it’s just a modded version of Firefox you can download and install in minutes with minimal setup. Be warned: If you download the Tor Browser, you’re only encrypting the traffic sent through the browser instead of your whole device. Some web browsers, like Brave, offer intuitive ways to leverage Tor, and some VPNs, including NordVPN and Proton VPN, have Tor Over VPN servers, which let you easily beef up your privacy.
Coverage: VPNs usually cover all of a device’s traffic, whereas Tor and proxies are more targeted
A VPN app typically encrypts all of the device’s network traffic by default, however that may not be the case with VPN browser extensions. Whether you’re browsing the internet on your phone, laptop or using a streaming app, it’s usually all covered by the same encrypted tunnel.
Some VPNs allow you to be more selective about the coverage you want by using split tunelling, in case you want to keep some apps off the VPN altogether. But many VPN browser plugins only encrypt traffic in your web browser, with some exceptions, such as ExpressVPN’s browser extension, which acts as a sort of remote control for the desktop app.
Proxies can be just as versatile, but require far more effort to achieve something that can be done in moments with a VPN, like split tunneling. However, in situations where you can’t install a VPN, you’ll find that some devices, like older smart TVs or game consoles that don't natively support VPNs, will have separate settings available just for using a proxy.
Coverage with Tor depends on the solution you use. If you’re just using Tor Browser, don’t expect any of your other apps to be covered by it. However, there are several ways to ensure your whole device is covered by Tor. Some VPN providers, such as NordVPN and Proton VPN, offer the ability to connect to the Tor network via VPN servers. This tunnels your whole device’s traffic instead of just your browser traffic.
There’s also Tails operating system, a portable privacy-first OS which can work entirely off of a USB flash drive. All of the traffic sent through a Tails installation is exclusively routed through the Tor network, no matter which app you’re running.
Streaming: Just don’t pick Tor
Streaming from services such as Netflix, HBO Max or Disney Plus on either a proxy or a VPN should work as long as the IP address you’re using isn’t blocked by the streaming provider. However, your mileage may vary when it comes to speeds if your provider has a substandard server network.
Regardless, the Tor network is definitely not built for high-bandwidth applications, and real-time traffic will likely lag unacceptably when sent through the Tor network, too.
Cost: Tor is free, but VPNs offer the best value
Tor is completely free and open-source. However, it’s also a volunteer network. Frankly, you get what you pay for as far as internet speeds go, but pseudo-anonymity may be priceless depending on your privacy needs. If you need pseudo-anonymity and can’t afford to pay for a VPN, Tor is a great value. Just don’t expect to stream movies or entire seasons of a TV show over Tor because of its comparatively slower internet speeds, which might impact video quality.
As for VPNs and proxies, the costs are roughly similar. You can get either for around $5 to $15 a month. That said, there’s a huge value difference between a proxy and even the average VPN.
Essentially, unless you’ve got a specific need for proxies, it’s almost always more worthwhile to buy a VPN. The best VPNs, such as ExpressVPN and NordVPN, offer significantly more server locations for roughly the same price, as well as better device support across the board and easy-to-use apps.
Encryption alone would be worth the increased cost, but VPNs usually deliver extra features such as ad-blocking, split tunelling and encrypted DNS servers to keep your web browsing activity out of the hands of your ISP.
You can use these tools together for extra privacy
When you use the Tor network, your internet provider can tell you’re making a connection to a Tor node but not what goes through it. If you want to hide that you’re connecting to a Tor node altogether, you can connect to a VPN first. Once you’re connected to a VPN server, start up your Tor browser on the same device.
The VPN routes your traffic to Tor over an encrypted tunnel, but your traffic is encrypted for Tor before it ever leaves your device, so it’s one way to double up on privacy.
However, bear in mind that you’re introducing several layers of encryption to your traffic and sending it through the Tor network, which isn’t particularly fast at the best of times without a VPN. You should expect drastically reduced speeds compared to just using a VPN.
Some VPN providers, such as Proton VPN and NordVPN, offer the ability to connect directly to Tor through Onion over VPN servers without needing to manage separate Tor software. All of the setup is taken care of for you in-app as soon as you connect.
Proxies can also be used with a VPN for extra obfuscation, which tries to hide the fact that you’re using a VPN. Private Internet Access allows you to chain your OpenVPN connection through a Shadowsocks SOCKS5 proxy, which has the advantage of making your VPN connection look like normal HTTPS web browsing traffic, meaning you may be able to hide your VPN usage from your internet provider or internet-connected apps and websites.
VPN vs. Proxy vs. Tor: Bottom line
For most people, a VPN is the best all-around choice. A well-made VPN offers strong encryption of your internet traffic and shouldn’t impact your bandwidth speeds too much. Best of all, setting up a VPN is significantly easier than a proxy or Tor. Once you’ve installed one, all of your device traffic is covered whenever the VPN is turned on.
If you can’t install a VPN client on the device you’re using, a proxy server might be a better choice since you may be able to set one up in your device’s network settings, especially if you don’t have privacy concerns about your internet activity. So, if you just need public IP address masking for your TV or gaming console for basic privacy or unblocking region-restricted content, try out a proxy. However, it also might be worth looking into installing a VPN on your router instead to cover all of your internet-connected devices.
Tor is the right choice in situations where privacy and pseudo-anonymity trump all other concerns. It’s built to protect folks with critical privacy worries such as investigative journalists and political activists. If you’re after maximum pseudo-anonymity, then Tor is most likely the right answer. While you can use a VPN first to disguise the fact that you’re using the Tor network from your ISP, you should be aware that you’ll receive drastically lower speeds than just using a VPN.