A proxy and a VPN both put a server between you and the websites you visit, so sites see the server's IP address instead of yours. The difference is how much they cover and whether they encrypt. A VPN encrypts all the traffic leaving your device, from every app. A proxy usually handles one app or your browser, and a basic proxy adds no encryption of its own. NordVPN's help center says a proxy server has no encryption, while a VPN encrypts all your internet traffic.

What a proxy server does

A proxy is a go-between. Your browser or app sends its request to the proxy, the proxy fetches the page and passes it back to you. Mozilla's developer documentation calls this a forward proxy and lists its main uses: storing popular pages to save bandwidth for a group of users, and hiding a user's IP address. A reverse proxy does the opposite job, sitting in front of a website to hide the identity of its servers, and isn't something you'd use for privacy.

You'll meet a few kinds of forward proxy:

  • HTTP proxies handle web traffic. When you visit an HTTPS site through one, your browser opens a tunnel through the proxy with a CONNECT request, so the page itself stays encrypted between you and the site. The proxy still sees which site you're connecting to.
  • SOCKS5 proxies work below the web layer, so they can carry traffic from apps other than a browser. NordVPN says SOCKS5 supports both TCP and UDP traffic and includes authentication, and it offers setup guides for torrent clients such as qBittorrent, uTorrent and Deluge.
  • Shadowsocks describes itself as a fast tunnel proxy that helps you bypass firewalls, and it encrypts traffic. It became popular for getting around censorship, and some VPN companies used to offer it. Surfshark, for one, dropped it in 2021.

Tor is related too. Mozilla describes it as routing your traffic through several proxies in a row for anonymity, which hides your address better than one proxy and is much slower.

What a VPN does

A VPN app creates an encrypted tunnel from your device to the VPN company's server, using a protocol such as WireGuard, OpenVPN or IKEv2. Everything your device sends goes through it: browser, email, games, streaming apps and system updates. Your internet provider can see that you're connected to a VPN server and how much data you use, but not which sites you visit.

Most VPN apps add features that proxies don't have, such as a kill switch that cuts your connection if the VPN drops, so your real IP address doesn't leak. Paid VPNs also give you servers in dozens of countries to choose from.

VPN vs proxy at a glance

VPN Proxy
What it covers Every app on the device Usually one app or the browser
Encryption Yes, all traffic to the VPN server None of its own, apart from Shadowsocks and similar tools
Hides your IP address from sites Yes Yes
Hides your browsing from your internet provider Yes No for a plain HTTP or SOCKS5 proxy
Who can see your traffic The VPN company Whoever runs the proxy
Typical cost Paid plans, plus a few free plans Often free, or bundled with a VPN

Browser extensions are usually proxies

The VPN extension for Chrome or Firefox that comes with your subscription often isn't a full VPN. NordVPN says its browser extensions route only your browser traffic through a proxy, and calls its app the more secure option because it protects all your data. Surfshark says its extension secures only your browser traffic and leaves the rest of your device on your regular IP address, while its app protects the whole device. An extension is handy for changing your location in one browser tab. It doesn't protect anything else on your computer.

When a proxy is enough

A proxy makes sense when you want a different IP address for one task and don't need encryption:

  • checking how a website or search result looks from another country
  • routing one app, such as a torrent client, through a different address while the rest of your traffic goes direct
  • following your employer's or school's network rules, since many organizations send staff traffic through a proxy that filters sites and caches pages

When you need a VPN

Use a VPN when what you want to protect goes beyond one browser tab:

  • you're on public Wi-Fi at a hotel, airport or café and want every app's traffic encrypted
  • you don't want your internet provider to see which sites you visit
  • you need to reach your usual services from a network that blocks them
  • you want streaming apps on a TV or console to use another location, which a browser proxy can't do (put the VPN on your router to cover devices without apps)

Free proxies and free VPNs

Whoever runs the server you connect through can see your traffic, so a VPN or proxy is only as private as the company behind it. That matters most with free proxy lists, where you often don't know who runs the server at all. With a VPN, read the privacy policy to see what the company keeps and for how long.

If you want something free, a reputable VPN's free plan is a safer starting point than a public proxy. Proton VPN has a free plan for one device with no data limits, and Windscribe gives you 10GB a month once you confirm your email. If you want one subscription for a household, Surfshark covers unlimited devices and NordVPN covers 10. NordVPN also runs SOCKS5 proxy servers for its customers, so you can get both tools from one company.

For prices and a fuller comparison, see our guide to the best VPN software.