Proxy vs. VPN: What is the difference, and which do I need?

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Online threats are everywhere. Not only do we have to contend with spam, phishing scams, malicious social media links, and more on a daily basis, but we also have to push back against widespread surveillance and monitoring: the collection of your data and records of your activities by online services, your internet service provider (ISP), governments, and cybercriminals.

If you're concerned about protecting yourself online, you may want to consider using a virtual private network (VPN) or a proxy server. With the right tools, you can shield yourself from prying eyes and safeguard your data from unwanted surveillance and monitoring.

These technologies can help protect your privacy, but there are significant differences between VPNs and proxies that you should know -- including why the average person should opt for a VPN over a proxy server to protect their security and personal privacy.

Also: The best VPN services: Expert tested

Proxies and VPNs, explained

What is a proxy server?

A proxy server is a gateway between your device and the Internet.

Many website owners originally used proxy servers to lighten the traffic load of visitors downloading content when they visited and allow cached content to be displayed locally instead. Proxy servers can facilitate traffic redistribution, and organizations may now use them for scanning and data collection.

However, proxy server use has expanded for privacy reasons. When users connect to an online service, these middleman servers only display assigned IP addresses, concealing the user's original IP address.

There are many different types of proxy servers. Web proxies mask your IP address and are often configured to work with specific applications. You can also use HTTP-based proxies to access streaming content and bypass geo-blocks. Other types of proxy servers include reverse proxies, SOCKS5 proxies, and transparent proxies.

What is a virtual private network (VPN)?

A virtual private network (VPN) is software that creates a connection between your device -- including PCs, smartphones, and tablets -- and servers owned by the VPN provider. The server network routes your traffic, creating a "middleman" network in which your original IP address is hidden. VPN server networks are typically spread around the world, giving you the option to appear from another location, including other cities and countries.

What are the main differences between a proxy and a VPN?

A proxy server is a gateway that can disguise your IP address and spoof web traffic. A VPN goes further.

The key difference you should know is that proxy servers can hide your IP address -- and VPNs do the same -- but VPNs have additional features to protect your privacy, including providing a layer of encryption. So, instead of just spoofing your IP address, VPNs create an encrypted tunnel between your device, the VPN's servers, and online services.

Let's say you use an open, free Wi-Fi hotspot in a hotel. Open hotspots are not secure by nature, so if you are using a proxy, interceptors could still read traffic packets and analyze your information. However, if you're using a VPN, even if you are using a public hotspot, your information is encrypted and unreadable. (It's still advisable to avoid public Wi-Fi, however).

Spoofing an IP address can be handy, but out of the two options, VPNs provide a superior solution for personal security and privacy.

How do I set up a proxy?

Proxy services for homes and businesses differ, so setting up a proxy will depend on its intended use. If you plan to use a proxy for a commercial purpose -- such as online scanning -- you will probably want to look online for a reputable proxy provider, sign up, and follow its setup procedure. Alternatively, if you already have the details of the proxy you want to use at home, you can follow the guides provided by Microsoft and Apple.

How do I set up a VPN?

To set up a VPN, visit your chosen service's website or an official software repository and download the software (at ZDNET, we've been testing VPNs for years -- these are our top picks). On mobile devices, you will want either the Google Play Store or Apple's App Store. Once you've downloaded the VPN, install it and allow any necessary permissions. Launch the app and either select your preferred server and location or use "quick connect," and you're done.

Should I use a proxy server or a VPN?

If your aim is to protect your privacy, mask your IP address, or ensure your data is encrypted during transit, you should use a VPN. A proxy server acts as a gateway, passing your requests through an intermediary server and hiding your IP address, but it won't provide the same levels of security and privacy -- or any additional features for safe browsing.

Our recommended VPN services

ZDNET has thoroughly researched and tested VPNs for years. Together, we have decades of experience using VPN software, and only recommend services we know to be secure, trustworthy, and fast. If you're interested in trying out a VPN, our top recommendations for the best VPNs on the market overall are below. For more thorough sets of recommendations, check out some of our coverage:

Should I use a VPN and proxy server at the same time?

We don't recommend using a VPN and a proxy server simultaneously. While you can, it will require careful configuration, and you are adding a further barrier between your device and the online service you are trying to access. It's also likely that the VPN's settings will override the proxy anyway.

Should I stay connected to a VPN all of the time?

Absolutely. A VPN encrypts your data and helps protect you against surveillance. It can also mask your IP address, change your digital location, and bypass censorship and geolocation blocks. If you disconnect from a VPN, you no longer enjoy this level of protection, and your data is transmitted outside of an encrypted tunnel. It's important to maintain consistency, and to this end, many VPN providers will include an automatic "kill switch" that blocks your internet connection if your VPN suddenly drops.

Does a VPN override the use of a proxy server?

In short, yes. Typically, a VPN will override any pre-existing proxy servers. You don't need a proxy server if you are already using a VPN.

Does a VPN make your IP untraceable?

No. While a VPN provides anonymity by routing you through a server network and hiding you behind a different IP address, it isn't a completely anonymous solution. In fact, there is no singular online tool that ensures your IP address is completely untraceable.

Can you detect if someone is using a proxy?

Yes. Many online services can detect if you're using a proxy server or a VPN. It is possible to find out if a proxy server is being used by running port scans, using an online proxy detection service, or checking request headers.

Should I use a free VPN or a free proxy?

If the service is reputable, then using a free VPN or proxy is certainly an option. However, remember that little in life is really free -- and so you should expect trade-offs in infrastructure, server limits, or speed restrictions.

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