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VPN vs Proxy — What is the Difference?

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VPNInfobase Research Team
6 min read Updated May 2026 Fact checked

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Both route your traffic through an intermediary server. But that is where the similarity ends. Here is the real difference and when to use each.

How a proxy works

A proxy forwards browser requests using its own IP. Websites see the proxy's IP instead of yours. Proxies only cover browser traffic. There is no encryption.

How a VPN works

A VPN creates an encrypted tunnel covering all traffic from every app on your device. All data is encrypted before leaving your device, routed through the VPN server, and forwarded to the destination.

Key differences

Encryption: VPN uses AES-256, proxy uses none. Coverage: VPN covers all apps, proxy covers browser only. Privacy: VPN is strong, proxy is minimal. Speed: proxies have no encryption overhead. Cost: proxies are often free, quality VPNs cost €2 to €7 per month.

When to use each

Proxy: quick temporary IP change in a browser with no security requirement. VPN: any situation involving privacy, security, public WiFi, torrenting, or full-device protection.

SOCKS5 proxy

NordVPN, PIA, and Mullvad include a SOCKS5 proxy. It handles non-HTTP traffic and is useful for torrenting speed without full encryption overhead — used alongside the VPN for overall device protection.

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