Proxy servers and Virtual Private Networks (VPNs) are often compared based on their performance as cybersecurity solutions. But that’s not exactly a fair comparison. While a VPN is primarily an online privacy and security tool, the same can’t be said about proxies.
In this article, we’ll explain the key differences between proxies and VPNs and the primary use cases for each. So if you’re unsure which one to choose, you should be able to find your answer below.
What is a proxy, and how does it work?
A proxy is an intermediary between the user and the internet. It routes your internet traffic through a proxy server before sending it to the website, app, or server you’re trying to reach. In the process, it hides your actual Internet Protocol (IP) address and replaces it with the proxy server’s IP.
Notably, proxies usually don’t offer encryption, but you can still establish HTTPS connections to better protect your data and activity. Proxies typically operate on an application level, so you get to choose which part of your traffic is being sent through the proxy server and which part remains unaffected.
Proxy types
When shopping for proxies, you’ll usually find that they’re split into several different types based on the quality of the IP addresses they provide. They’re usually split into three types:
- Residential proxies — residential proxies provide residential IP addresses that are linked to actual devices in residential areas. These IPs look suspicious, so they face the least bans and restrictions from websites;
- Static Residential ISP proxies — Internet Service Provider (ISP) proxies also provide residential IP addresses, but the servers are hosted in data centers rather than residential devices. They beat residential proxies when it comes to performance but are slightly easier to detect;
- Datacenter proxies — datacenter proxies are hosted in data centers and are not linked to ISPs. As a result, they have data center IP addresses and Autonomous System Numbers (ASNs), which means they’re the easiest proxy type to detect. These proxies are most likely to be blocked by websites with advanced proxy detection solutions.
While datacenter proxies offer the worst IP quality of all proxy types, they’ll still cover a majority of proxy use cases and provide solid performance number due to being hosted on datacenters.
For comparison's sake, VPNs don’t offer residential IPs at all. A datacenter proxy will often outperform a VPN when it comes to connection success rate because most providers offer dedicated IPs with datacenter proxies.
Meanwhile, VPN IPs are shared by thousands of users at a time, which increases the likelihood of that IP being blocked. Some VPN providers do offer dedicated IP options, but you’ll usually have to pay extra to get them.
Proxy use cases
Proxy use cases are the reason why we stated that comparing proxies with VPNs as cybersecurity solutions isn’t fair. According to a 2024 Proxyways Market Research, proxy users named e-commerce and web scraping as the main reasons for using a proxy, with only 8.3% of users citing cybersecurity as a primary proxy use case.
Here’s a quick overview of the main reasons to use a proxy:
- Web scraping — whether it’s for e-commerce or general uses, web scraping is by far the most popular use case for proxies. E-commerce platforms scrape the web to gather pricing information, analyze the services and products that the competition offers, and more. As a result, companies can make data-driven decisions instead of guessing what’s the best move to make.
- SEO monitoring — companies gather data about the SEO and content strategies their competitors use to improve their current strategy or gain new insights.
- Social media management — proxies are often used to manage social media accounts. Many platforms don’t like it when many accounts are linked to the same IP, and using proxies allows you to change the IP for each account and access the platform as if you’re visiting from the country of your target audience.
- Ad verification — if you’re running ads in multiple locales or if you have a website that hosts ads in multiple locales, you’ll want to check them all for any malicious links or imagery. Proxies are often used to hop in between locales and ensure that all ads are run according to your requirements.
- Accessing restricted content — whether you want to unlock a foreign streaming library, access a limited sneaker sale, or simply overcome the restrictions put in place by your school or workplace — a proxy can help you with that. Since proxies typically offer better-quality IPs than a VPN, you’ll typically face fewer issues trying to access restricted content.
As you may have noticed, most proxy use cases are business-oriented. While it can be used as a tool to enhance your privacy when simply browsing the web, that’s not usually the main reason for using a proxy.
What is a VPN, and how does it work?
Much like proxies, VPNs acts as an intermediary between you and the internet by route your internet traffic through a server. Instead of a proxy server, your data travels through a VPN server before reaching the internet.
Most premium VPN services offer end-to-end encryption and use advanced encryption protocols such as AES-256 or Cha-Cha20 to protect user activity data. A VPN also works on an operating level, so it routes your entire traffic unless you specifically choose not to.
As a result, it’s better suited for individuals who seek to improve their privacy on the web than businesses dealing with large-scale data operations.
On the other hand, VPNs use data center IPs which are typically shared by thousands of users. This makes VPN traffic much easier to detect and block, which is why proxies are typically more reliable for accessing restricted websites.
VPN use cases
According to Forbes 2024 VPN statistics, 80% of users choose a VPN for increased security, and 66% use it to protect personal data. That’s a stark contrast compared to the 8.3% of users who reported using a proxy for the same reasons.
Here are some of the main reasons why users choose to use a VPN:
- Security and privacy — with advanced encryption and strict no-logs policies that most premium VPNs boast, a VPN is a great way to protect your online identity and activity.
- Accessing restricted content — VPNs are often used in countries with oppressive internet censorship to access free media and news. They’re also used to access streaming services and other forms of region-locked entertainment.
- Whistleblowing — since a VPN encrypts all traffic from the moment it leaves your device, it’s a popular tool amongst whistleblowers wanting to spread news or information about oppressive regimes or other sensitive issues without being found out.
- Protecting business networks — businesses can also benefit from the privacy that VPNs offer. Many businesses use VPN solutions to protect their employees from leaking sensitive information or to generally protect their network.
Once again, VPNs are much more privacy-oriented than proxies. So, if you’re looking for a privacy and security solution, a VPN is usually the better option.
Proxy vs. VPN: what are the key differences?
The information above can be a bit much to take in. So we’ve summarized it into key differences to consider when picking between a VPN and a proxy.
Should you use a free VPN or proxy?
No, you shouldn’t use a free proxy or a free VPN. Getting anything for free always sounds tempting. But there’s no such thing as a free lunch, and the same applies to proxies and VPNs.
First of all, the quality of the service will always be poor. The servers are overcrowded, which results in slow connection speeds and limited access to websites. You’re sharing an IP with thousands of others, and it’s more than likely that someone will break the Terms of Service (ToS) and get IP banned, restricting access to all others as well.
More importantly, free services still need to make money to support their infrastructures. If you’re lucky, they’ll only bombard you with an obscene amount of ads. In some cases, they’ll collect and sell you activity data, infect your devices with malware, or turn your device into a proxy server without you knowing.
Either way, the risks of using a free VPN or proxy server are far greater than the price of a quality service. So if you’re going to use either one, make sure to go with a reputable paid provider.
Conclusion: Proxy vs. VPN
A choice between a proxy and a VPN depends solely on what you need it for. If you need a fast connection speed, an IP that’s hard to detect, and need to collect a lot of data for your business — using a proxy is the best choice for you. If you’re just looking to improve your privacy and security online, then you’ll be better off with a quality VPN service.
The two have distinct use cases and shouldn’t really be compared with one another but rather understood as separate tools that both have their spot in the cyberworld.
