VPN vs Proxy — Which Should You Use & When?

Proxies come with a lot of issues. Potential access to your personal credentials, challenging setup, and the fact that it caches and saves all online data (even private details) make a proxy significantly less secure than a VPN. Your IP address might not be unique to the proxy either, as proxy providers often share IPs. 

This doesn’t mean every proxy is bad, it just means you need to be very diligent about choosing one. Trusted proxy servers are great for one-time use or instances where you don’t care about security and privacy. Still, you’ll find the answer to VPN vs proxy isn’t black and white, there’s a lot of gray area to consider. 

So how do you know which one to choose? Read on to learn about the pros and cons of VPNs and proxies, when to use each, and which offers a truly secure connection.

To know whether to use a proxy or a VPN, you need to know what each one can do. Both can provide you with a virtual IP address, but that’s where the similarities end.

What Is A VPN?

VPNs are cybersecurity tools millions of people use to increase their online anonymity. Once you connect to the VPN and choose your location, it routes your traffic through a secure server in the city and/or country you selected — this masks your IP address with one from our network. A VPN also uses strong encryption methods to mask your traffic and make it unreadable if someone does manage to intercept it. 

Trustworthy VPN providers adhere to a strict No Logs policy. This means they never collect usage information or track your online activity for any reason. Additionally, you can connect to any location on the VPN network for safe online browsing anywhere it has servers. 

Depending on which VPN provider you choose, you may get some or all of the following security and privacy features.

• A kill switch to prevent data leaks and potential tracking
• DNS/IP leak protection to avoid location leaks
• Military-grade 256-bit AES encryption for maximum data privacy
• Dedicated IP address options for an exclusive IP address
• Malware and/or antivirus protection to block malicious software

What Is A Proxy Server?

Proxy servers are routers or systems used to create a private tunnel between client traffic and its final destination. Proxies provide an IP address primarily through virtual servers or partnering systems to attempt to mask your location and personal information. 

Free proxies don’t offer any form of traffic encryption and also store user data to provide faster access to regularly visited websites. The problem is that caching makes it easier for internal and external parties to get a hold of your online information because it’s in one place. 

If you want to choose or change your location, a free proxy is a bad idea. Free proxy services aren’t designed to allow you to easily choose a location. Worse yet, many make configuring the service to your network complicated, so if you aren’t tech-savvy it can frustrate you quickly.

Paid residential and datacenter proxies are a better solution if you want to hide your IP and secure your traffic. While they don’t provide the same strong security and privacy features as a VPN, you generally get some form of traffic encryption to mask your data and an IP that’s unlikely to be used by spammers.. Depending on your provider a residential or data center proxy may provide the following.

• Secure Socket Layer (SSL) encryption to mask your traffic
• A private IP address to browse the web free of location tracking
• Compatibility with more than browsers

Basic Features & Capabilities – An Overview
Feature or Capability	Proxy	VPN
Ability to access region-specific sites outside a designated area	✅	✅
Hides your origin IP address with a different IP	✅	✅
Provides strong traffic encryption to mask your data	❌	✅
Easy to set up and configure	❌	✅
Provides an IP unique to the provider	❌	✅
Speeds are consistent for streaming, gaming, and file-sharing	❌	✅
Complete online privacy protection across devices and platforms	❌	✅
Tracks and stores client data in a cache for future use	✅	❌
Prevent third parties from viewing browsing habits/online data	❌	✅

Remember, these features don’t apply to all proxies and VPNs. The features and capabilities in the table above are based on the most commonly used version of each service — trustworthy, paid VPNs and free proxies. According to a 2023 VPN Market Report from Security.org, the majority of VPN users prefer to pay for services — just under 50% choose a free VPN. Proxy use leans the opposite way, with many users preferring a free version.

This is due in part to the benefits and affordability of a premium VPN versus a paid residential or datacenter proxy. Datacenter proxies are more affordable but run a greater risk of failure, making them less reliable. ISPs provide most residential proxies and they can be expensive. Additionally, your ISP already knows your location, and since proxies cache data, they can track your activity — sounds counter-intuitive doesn’t it?

A trustworthy premium VPN like PIA eliminates the threat of third-party spying. Sure your ISP knows you’re using a VPN, but they don’t know what you’re doing. You also get strong VPN encryption to mask your traffic and hide your online activity from trackers and spies. Most paid VPNs have competitive pricing and some even offer money-back guarantees or free trials. 

VPN vs Proxy

In many cases, a free VPN service is just as unsafe as a free proxy, both can include malware or track and collect your online information. On the flip side, premium residential or datacenter proxies offer traffic encryption to provide a more secure connection — something you can expect from a VPN.

The service you need to use will vary based on your specific needs, including the level of privacy and security you require, budget limitations, and duration of use. Whether or not those needs are met depends on the quality of the VPN or proxy service you choose. Let’s do a quick comparison to cover the basics, then we’ll break it down into when and why to use each option.

VPNs vs Proxies, All the Pros & Cons
VPN		Proxy
VPN Pros	VPN Cons	Proxy Pros	Proxy Cons
Strong encryption to scramble your data and make it unreadable.	Encryption impacts your internet speed.	Great for one-time use.	Inadequate or no traffic encryption.
Reliable private internet connections	Free versions often include malware.	Bypasses geoblocks on occasion.	Much slower than VPNs with encryption due to intensive usage.
No Logs means the VPN doesn’t collect, store, or share your usage data.	Premium services may cost a bit.	Good selection of providers to choose from (free and paid).	Doesn’t provide complete online protections (often only one site at a time or just in-browser)
Work on most major devices including PCs, macs, laptops, mobile phones, and routers.	Not all VPNs audited their No Logs policies.	Sometimes masks your origin IP with a different IP.	Not designed to let you easily choose or change your location.
Unblock and access region-specific accounts outside designated areas			Safe proxies are difficult to install and configure.
Fast installation and setup.			Paid proxies are usually expensive (especially the ones with residential IPs).
Easy-to-use apps with intuitive user interfaces (UIs)			Proxies cache data to load frequently visited pages faster.
Mask your origin IP with a safe IP.			Free versions may sell client data to third parties for a profit.
Complete online protection (browsers, apps, websites, etc.).			Anyone can still track your online activity.
Wide selection of providers to choose from (free and paid).			Can share IP addresses with other proxies.
Choose your location from a vast network of secure servers.

Which Service To Use, Proxy or VPN, and When

Now that you know what VPNs and proxies are, what features and capabilities each has, and the common pros and cons for each service, it’s time to look at some use cases for each. 

When You Need Privacy

A VPN wins the privacy battle hands-down. VPNs encrypt your traffic as it passes through their servers. 

Free proxies don’t encrypt traffic, so your online privacy is always at risk. Additionally, VPNs work cross-platform from web browsers to apps, so every connection gets the same protection, not just your browser.

Trustworthy VPNs have No Logs policies, which means they don’t collect, store, or share your online information with anyone. 

Proxies cache data so they can load pages you visit regularly faster and use less bandwidth. Your information, including sensitive information you enter on websites, can sit in this cache indefinitely. This huge pool of readily available information is a huge draw for cybercriminals.

To Save Money

A premium VPN can be cheaper in the long run than a paid proxy. Free is always more attractive to users than the idea of paying, but as with most things, however, you get what you pay for – which is an unsecured connection and really, really slow internet.

Free proxy services don’t perform the same checks and maintenance you’ll notice with residential or datacenter proxies. Likewise, a free VPN may not provide the same security and privacy you get with a premium service. 

You don’t have to pay a fortune for a VPN, but if you want unrestricted access to the entire server network and top privacy features, it will cost you something. Maintenance and security upgrades aren’t cheap and you’ll want a VPN that provides plenty of both. If you’re on the fence, make sure the VPN offers a free trial or money-back guarantee. That way, you can try the service risk-free for a limited time.

Ease of Use

Believe it or not, it’s faster to purchase, download, and install a VPN than to configure most proxies. Let’s take a look at how you would manually install a proxy on Windows 10 for example. Keep in mind this is only the very bare minimum setup required for the proxy.

Windows 10 does offer an automatic proxy setup but it’s better to manually configure them for home networks or it may not detect the proxy.¹ Make sure the Automatically detect settings button is off before manual configuration.

Most premium VPN providers have apps that make the installation process easier. An app also makes using the service to get an IP address quick and painless. We’ll use PIA as an example of how easy it is to install and use a VPN because it offers apps for all major operating systems.

One-Time Use

Depending on what your one-time use case is, you can use either one. A proxy works if privacy isn’t a priority for the task at hand. If you just want a virtual IP address to browse the internet and aren’t worried about your online information, a proxy is a viable solution. 

However, proxies are generally only useful for browsers whereas VPNs work with apps, browsers, and more. When you need to hide your IP address and require privacy protection for accessing sensitive accounts cross-platform… you need a VPN.

When Torrenting

Use a VPN. 99 times out of 100, proxies are much slower than VPNs for browsing, gaming, streaming, and torrenting. Theoretically, proxies can be faster if you don’t encrypt your traffic and you have the same server resources.

Practically, proxies are incredibly slow as they often don’t have enough bandwidth, with most services struggling to provide a seamless browsing experience, let alone enable streaming or gaming. A proxy won’t protect you if you accidentally download something from a less-than-reputable torrenting site.

PIA doesn’t condone the use of a VPN to perform illegal activities. Always be mindful of the websites you use for torrenting and stick with content distributors you trust. That said, if you are trying out a new torrenting site and make a mistake, you’ll want VPN protection. VPNs prevent your ISP and anyone else from tracking your downloads back to you and viewing your online activity — something a proxy can’t do. 

To Access Sensitive Accounts

A VPN is better for accessing sensitive accounts like banking, taxes, or medical records — no contest. As previously discussed, proxies cache usage data — including private information you enter into sites. 

VPNs encrypt your traffic to make it unreadable if a cybercriminal intercepts it. Moreover, any trustworthy VPN maintains a strict No Logs policy, which means it doesn’t collect, store, or sell usage data.

Why You Might Use Both

Some people prefer to have both, even though a VPN can cover all the bases. One of the reasons people continue to use a proxy after getting a VPN is to maintain the fastest speeds possible for streaming and other tasks that emphasize speed over security. Others find setup easier than installing a VPN when they only need an IP address for basic location spoofing.

You can get the best of both worlds without making major configurations or spending a fortune, just use PIA’s SOCKS5 VPN option. You can find it under Multi-Hop in the VPN app settings. Use Shadowsocks, SOCKS5 plus encryption, for added privacy with a barely noticeable speed drop. Our servers run on 10 Gbps network cards for fast speeds regardless of whether you’re using the VPN itself or the SOCKS5 proxy.

If you want a more in-depth look at PIA’s SOCKS5 feature, and Shadowsocks, check out SOCKS5 VPN.

Final Consensus — Using A VPN Is Far Better Overall

Proxy services definitely have a purpose and provide a quick solution when you need another IP address — especially if it’s a one-and-done situation. However, a VPN is a more comprehensive long-term solution. It hides your IP and helps you maintain your online privacy.

That’s why a trustworthy VPN like PIA is the best option for a stable connection and strong data protection. PIA doesn’t just cover browsers, it secures all your internet connections across platforms — including browsers, apps, and more. 

We use 128-bit AES encryption by default but you always have the option to switch to 256-bit AES to get maximum privacy for sensitive accounts. You also get unlimited device connections with your subscription and we never collect information on how you use our service — or how often. 

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