Proxy Vs VPN: Definitions And Differences

Proxy Vs. VPN: What’s The Difference?

For nearly a decade, Toni Matthews-El has published business topics ranging from cloud communication software to best steps for establishing your own LLC. In addition to Forbes Advisor, she's published articles for Medical News Today, US News and World Report.

Cassie BottorffEditor

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

Toni Matthews-El,

Toni Matthews-ElStaff Reviewer

Cassie Bottorff

Cassie BottorffEditor

Staff Reviewer, Editor

Rob WattsManaging Editor, SMB

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

Reviewed

Rob Watts

Rob WattsManaging Editor, SMB

Managing Editor, SMB

Reviewed

Updated: Jan 31, 2023, 9:00am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Table of Contents

With corporate cyberattacks up 50% and 73% of American households voicing privacy and security concerns, it is no surprise that many are turning to proxies and VPNs to avoid digital crises. While these two approaches share similar functions, understanding their differences can allow you to determine which tool best suits your browsing needs. To help, we set up a proxy vs. VPN comparison guide to better understand how each works.

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Proxy vs. VPN: Similarities and Differences

If you aren’t familiar with a VPN or proxy, it could be easy to confuse the two based on their functions. For instance, both tools hide your internet protocol (IP) address, making it seem you are in a different location. However, it is crucial to distinguish the two to get the most out of their security and privacy-related offerings.

What Is a VPN?

A virtual private network (VPN) is a digital tunnel that takes your data from one point to another. When your information enters the tunnel, it gets encrypted (typically with AES 256-bit encryption). To anyone not approved to view it, the information would be extremely difficult to understand. The data only becomes legible again once it reaches the intended destination.

VPN usage aims to protect your identity, obscure browsing behaviors from watchful eyes and shut down most hacker antics. The system encrypts your information, making it easy to visit the web from various locations without concern about who might have access to your online activity. VPNs can be used on desktop computers and mobile devices.

Pros and Cons of Using a VPN

Although virtual private networks are for internet security, they have drawbacks. The following chart features the benefits and disadvantages of setting up a VPN.

Pros of Using a VPN	Cons of Using a VPN
• Keeps your online browsing behaviors private • Helps you access websites that you might not otherwise be able to because of your location • Protects your identity •Allows access to information blocked by government censorship • Lowers risk of data breaches and increases protection of company secrets	• Slows down your online browsing speed • The VPN service might still be able to track your online activity • Depending on your location, VPN usage might be illegal • The best VPN options almost always come with a subscription fee

Before signing up for a VPN service, you should determine if the benefits outweigh the costs and if there are any legal concerns to consider.

What Is a Proxy?

A proxy or proxy server is a system that acts as a gateway linking you to the Internet. It acts as an intermediary. Depending on how it gets set up, a proxy will accept or reject device access to websites. For example, school computers may allow students only to access specific educational sites while rejecting attempts to access social media pages. You might also use a proxy for file sharing or streaming.

Unlike a VPN, a proxy doesn’t encrypt your data. This means that, beyond a simple IP spoofing process, the data you transmit over the network will still have identifying information that might be easily stolen by internet snoops, such as your name or browsing history. Proxies have fewer built-in security measures than VPNs and won’t protect your data or identity.

Pros and Cons of Using a Proxy

As with VPNs, a proxy works well for some purposes but not others. The chart below features a few examples of the positives and negatives of proxy use.

Pros of Using a Proxy	Cons of Using a Proxy
• Typically available for free • Allows for anonymous browsing • Ensure private files or the Internet get accessed by authorized individuals • Keep employees or students on task by blocking access to distracting websites	• Limited to a single device, browser or app at a time • Holds onto a cache of past browsing behavior, raising the risk of a data breach • Possibility of compatibility issues with your local server network

When To Use a Proxy or VPN

There are certain benefits that you’ll get with a proxy that you won’t with a VPN. Even so, there are situations where the use of one or both is best. The table below features helpful examples of when you might prefer a proxy to a VPN or be able to use both.

	Proxy	VPN
Use on More Than One Device	No	Yes
Protect Identity While Browsing Online	Yes	Yes
Access the Internet Anonymously	Yes	No
Protect Company Data From a Potential Breach	No	Yes
Stream, Game and Share Files	Yes	Yes
Prevent Unauthorized Access to Social Media Websites by Students or Personnel	Yes	No
Get Around Government Censorship	Yes	Yes

Proxy vs. VPN: Which is Better?

Ultimately, whether a VPN or proxy is best for your situation depends on the exact goal you hope to accomplish. If you wish to encrypt data as a security measure, this is something a VPN can handle that a proxy cannot. Likewise, proxies allow you to block certain sites while VPNs help you get around regional blocks that other websites may be using. Finally, if your company has a lot of data at risk, a premium VPN service will likely be the better choice over a free proxy server.

However, if you don’t want to choose one over the other, you may not have to. A proxy server used in tandem with a VPN works very well to maximize both privacy and security.

Featured Partners

NordVPN

$3.49 per month

AES-256

NordVPN

On NordVPN's Website

Surfshark

$2.29

Unlimited

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Surfshark

On Surfshark's Website

Private Internet Access

$2.03

Unlimited

AES-256

Private Internet Access

On Private Internet Access' Website

Frequently Asked Questions (FAQs)

What is a VPN?

A virtual private network or VPN is a digital tunnel that encrypts your information, allowing you to protect your identity and privacy while browsing the Internet.

What is a proxy?

A proxy server is an intermediary set up to accept or reject requests for access to the Internet or private files.

What is the difference between a proxy and a VPN?

A VPN encrypts data that passes from one point to the next while a proxy does not. Also, a proxy can actively block your attempts to access unauthorized websites or files; VPNs instead are meant to prioritize the private nature of how you access the Internet.