Proxy Servers: 2024 Beginner’s Guide

Data Center, Residential, and Mobile Proxies: A Guide to Free and Premium Options

Proxy Compass
12 min readSep 3, 2024
proxy server guide cover

A proxy server manages all your connection requests, boosting your anonymity, granting access to location-restricted content, handling numerous automated tasks, and filtering the traffic it processes.

Whether you’re using web proxies, free proxy lists, public proxies, or opting for static or rotating proxies through premium services, this tool is invaluable for both small businesses and large corporations.

This guide provides a concise yet comprehensive introduction to proxy servers. You’ll discover how SOCKS proxies and HTTP proxies function, where they’re commonly used, and the key differences between them. We’ll also compare residential, data center, and mobile proxies, outlining their distinct features and how to choose the best option for your needs.

Several sections will guide you to more in-depth articles on these topics. We hope you find this guide helpful.

Let’s get started.

What is a Proxy Server?

A proxy server is like a middleman between your device and the internet. It takes your web requests, sends them to the target website, and then returns the website’s response to you.

This way, your real IP address is hidden, which helps keep your identity private, improves security, and allows you to access content that might be blocked in your location.

What Are Proxies Used for?

Proxies for Private Use

Proxies are often used for personal reasons, especially when someone wants to access content that’s blocked in their country.

For example, in countries where social media platforms like Facebook or Twitter are banned, proxies can help users unblock and access these sites.

Similarly, people use proxies to access adult content or opposition websites that might be censored in their region. Another common use is streaming platforms that have geo-restrictions, like Netflix, which offers different content in different countries.

Additionally, proxies can be used to access news websites that might be restricted in certain countries, join online communities that are banned, or access educational resources blocked by local authorities.

All of these uses are generally considered private and one-time activities.

For these purposes, web proxies, proxy online (anonymizers) services are often sufficient. These are simple tools where you enter the URL of the website you want to visit into an address bar on the proxy site, and it allows you to access the content despite any restrictions.

web proxy or anonymizer
an exammple of anonimizer or web proxy

Proxies for Business

In the business world, proxies are essential for managing large-scale online operations where multiple proxies are needed.

For instance, businesses use proxies to collect content from the web, perform web scraping, and gather large amounts of data (data collection).

Proxies are also used for upvoting content, artificially boosting views, or increasing the number of downloads for apps or files.

Other examples include managing multiple social media accounts, running automated marketing campaigns, and conducting competitive analysis by accessing region-specific data.

All these activities can be considered business purposes because, in the end, they are all aimed at making money. To achieve these goals, a large number of proxies are required, which can be either paid (premium paid proxies) or free (free proxy lists, public proxies).

Everything below applies to proxies for business needs. Let’s go!

What Are Free Proxy Lists and Public Proxies

Free proxy lists and public proxies are proxies that are publicly available and can be accessed without any cost. These proxies are typically shared on various websites and can be used by anyone. They operate without requiring authentication by IP address or Username/Password.

proxy list example
proxy list example

Public proxies can support different protocols, such as HTTP, HTTPS (though this is rare), SOCKS4, and SOCKS5. They are generally categorized into several types: transparent, distorting, anonymous, and elite proxies.

Read more: To learn more about these types and how they work, visit this article about free public proxy lists.

What Are Paid Proxies, Also Known as Premium Proxies?

Paid proxies, also known as premium proxies, are IP addresses rented out by hosting companies and proxy providers for a fee. Payment is typically made on a monthly basis and can be calculated in different ways: either based on the number of IP addresses rented or the amount of traffic used by the client of the proxy service.

These proxies are generally very fast, reliable, and rarely, if ever, go offline. Their availability is usually expressed as an uptime percentage. A good uptime for a paid proxy service is 97% or higher.

Premium proxies typically support several popular protocols. The most versatile and anonymous is SOCKS5. Its predecessor, SOCKS4, is limited by its lack of support for certain modern functionalities like authentication and UDP traffic. HTTP proxies are commonly used for web browsing, while their more secure counterpart, HTTPS, is used for encrypted and secure connections.

Paid proxies come in various forms, such as data center, mobile, or residential proxies. It’s important to understand the differences between them to choose the right proxy for your needs and avoid unnecessary expenses.

Proxies can also be either static, maintaining the same IP address for an extended period, or dynamic, often referred to as rotating proxies. We’ll cover all these aspects in detail further in the article.

Let’s get started!

The Difference Between Data Center, Residential, and Mobile Proxies

The difference between data center, residential, and mobile proxies lies primarily in two factors:

  1. Where the proxy software is hosted (on what hardware), and
  2. Who owns the IP address assigned to each specific proxy server.

These two factors have a significant impact on the speed and performance of the proxy, as well as its intended use cases.

Naturally, they also influence the cost of using these proxies.

What Are Data Center-Hosted Proxies?

Data center-hosted proxies are the fastest, most reliable, and cost-effective type of proxies available. These proxies are typically owned by hosting providers who have the infrastructure to house hardware in their own or rented data centers. They also have access to large blocks of IP address subnets, which can include both standard IPv4 and the more advanced, though not yet universally adopted, IPv6 addresses.

Data center proxies rarely experience downtime or become unavailable. This is because the equipment in a data center is constantly monitored and maintained. If any issue arises, it is quickly addressed, with faulty hardware being repaired, replaced, or reinstalled promptly to ensure minimal disruption.

To learn more about the advantages and disadvantages of data center proxies, check out our dedicated article — Everything About Data Center Proxies.

What are Residential Proxies?

Residential proxies are known for their varied speed and connection stability, high trust levels, and highly flexible geo-targeting capabilities, but they come at a premium price. The hardware for these proxies consists of home computers, laptops, mobile phones, and tablets spread across the globe, connected to the internet via cable or Wi-Fi. The IP addresses of residential proxies are assigned by home internet service providers.

In the United States, these providers include Comcast, AT&T, and Spectrum; in Germany, Deutsche Telekom and Vodafone; in Brazil, Vivo and Claro; in Australia, Telstra and Optus; and in India, Airtel and Jio.

To learn more about the advantages and disadvantages of residential proxies, check out our dedicated article — About Residential Proxies.

What are Mobile Proxies?

Mobile proxies are the most trusted but also the most expensive type of proxies. Providers typically have agreements with various mobile network operators and manage many 3G, 4G, or 5G routers. Sometimes, they also use mobile phones grouped into what are called mobile farms. These providers create systems to manage these devices, enabling them to offer mobile IP addresses to their proxy service clients.

To learn more about the pros and cons of mobile proxies, check out our article — Everything About Mobile Proxies.

What to Choose: Residential vs. Data Center vs. Mobile Proxies

There are a few guidelines to help you choose the right type of proxy for your needs. For websites that are not protected by CAPTCHA or other anti-automation measures, any type of proxy will work. In this case, data center proxies are your best bet. They allow you to accurately budget and save money, as the cost is based on the number of IP addresses used rather than the amount of traffic. An added advantage is their fast and stable connection.

However, if the target website has protection against automated access, data center proxies might not be suitable. You’ll need to decide between the remaining two types: residential or mobile proxies. Both are highly trusted and can bypass most security measures. However, they come at a higher cost, with pricing based on the amount of traffic used. Mobile proxies are generally faster and more stable, while residential proxies offer more precise geo-targeting.

If you’re still unsure which type of proxy is best for your needs, consult with a proxy provider — for example, us.

What are Static Proxies

Static proxies are assigned for long-term use, typically for a month or longer, with the option to extend the service. The key benefit of static proxies is that the IP address remains unchanged throughout the duration of use. This consistency is crucial for business scenarios where maintaining the same IP address is essential.

Why Static Proxies Matter:

  • Account Management: For businesses managing multiple accounts on platforms like social media, e-commerce, or banking websites, logging in with a consistent IP address reduces the risk of triggering security measures that could lead to account suspension or additional verification steps.
  • Access to Restricted Content: When accessing content or services that require a stable IP — such as corporate networks, SaaS platforms, or region-specific content — static proxies ensure uninterrupted access without the hassle of being flagged for changing IPs.
  • Ongoing Transactions: Businesses that rely on consistent, long-term transactions, such as financial services, online advertising, or automated workflows, benefit from static proxies, as they prevent interruptions caused by IP changes that could otherwise lead to session timeouts or blocked access.

Static proxies are ideal for businesses that require a dependable and consistent IP address for ongoing operations, making them a vital tool for long-term projects that demand stability and reliability.

To uncover all the secrets of static proxies, be sure to check out our dedicated article about static proxies.

What are Rotating Proxies

Rotating proxies provide businesses with a dynamic way to manage their online activities. Instead of getting a fixed list of proxy IPs, users receive a gateway IP address. This gateway connects to a pool of proxy servers. When set up in your software, it automatically switches to fresh proxies from the pool, keeping your connection secure and varied without any extra effort.

Why Rotating Proxies Matter:

  • Avoiding IP Bans: Rotating proxies help you avoid getting blocked, especially during tasks like web scraping, by using a new IP address for each request.
  • Increased Anonymity: Each connection uses a different IP, making it much harder for websites to track your activities.
  • Handling Large-Scale Tasks: If you need to perform high-volume tasks, rotating proxies ensure you always have access to fresh IPs, keeping your operations running smoothly.

To learn more about the ins and outs of rotating proxies, be sure to check out our dedicated article about rotating proxies.

What are HTTP Proxies

HTTP proxies are a widely used type of proxy because they operate using the HTTP protocol, which many bots and scripts are built to support. Although HTTP lacks encryption — meaning all data is sent in plain text — it remains useful for specific business applications.

For instance, HTTP proxies are commonly used in tasks like sneaker copping, web scraping, and other automated activities where encryption isn’t required. Tools like cURL, Python scripts, and various automation bots often rely on HTTP proxies due to their compatibility and ease of integration.

However, businesses should avoid using HTTP proxies when handling sensitive information, as they do not provide adequate security. Additionally, if your proxy doesn’t support HTTPS, you won’t be able to access most websites, as nearly all require HTTPS for secure connections.

For more secure needs, HTTPS (SSL) proxies are the better choice. These proxies use the SSL protocol to encrypt data, significantly reducing the risk of interception while still maintaining compatibility with most bots and scripts.

To learn more about HTTP and HTTPS proxies, be sure to check out our detailed article on HTTP and HTTPS proxies here.

What are SOCKS Proxies

SOCKS proxies are a powerful tool for businesses that need a flexible solution capable of handling more than just standard web traffic (HTTP/HTTPS). They are especially useful in situations where you need to manage different types of data, like gaming, file transfers, or communication apps. For example, SOCKS proxies work well with torrent clients (like qBittorrent and uTorrent), chat and video platforms (such as Skype and Telegram), and streaming services that use multiple ports. Their ability to handle both TCP and UDP traffic makes them a go-to choice for businesses that need consistent, high-performance connections across various applications.

If your script, bot, or browser needs to work across all types of protocols, SOCKS proxies are the most anonymous and versatile option.

For more detailed insights into how SOCKS proxies can benefit your business, check out our full article on SOCKS proxies and their applications here.

Proxy User Authentication Methods

When it comes to proxy user authentication, there are two main methods: Username/Password Authentication and IP Address Authentication.

Authentication by Username and Password

This is the most popular method among users because of its simplicity and ease of use. Users simply need to enter their credentials to gain access to the proxy.

However, this method is less favored by proxy service providers. The reason is the risk associated with users reselling or sharing their purchased proxies. Because of this, some providers prefer not to offer this authentication method to maintain tighter control over how their proxies are used.

Authentication by IP Address

This method involves the user binding their own IP address to the proxy within the proxy service’s dashboard. To do this, the user enters their IP address into a specific field, often labeled “Binding IP”, “Auth IP”, or “Whitelist IP”.

Once set, the proxy can only be accessed from that particular IP address, making it impossible to use the proxy from any other IP.

This method is especially useful for clients using software that doesn’t support Username/Password authentication. For proxy services, this method offers more security and ensures that proxies are not resold or shared by customers.

The number of IP addresses a client can bind typically ranges from 1 to 10 or more, depending on the service.

Advanced Authentication by IP Range

An advanced form of IP authentication is /21 Subnet Authentication. This method is often used by large corporate clients who manage multiple servers within the same /21 subnet.

For example, if a client’s IP address is:

123.100.100.100

they could authorize any IP within the range of

123.100.96.0 - 123.100.103.255

This method provides flexibility by allowing proxies to be used across multiple servers within the same subnet, which is particularly advantageous for larger operations.

This advanced authentication method is designed to accommodate businesses with extensive server networks, giving them reliable access to proxies from multiple servers within a single subnet.

What is Proxy Geolocation?

Geo-targeting is determined by the country associated with a proxy’s IP address. The key factor is the country where the IP address is registered, not the physical location of the server hosting the proxy software.

For example, a proxy IP might be registered to an IT company in Mumbai, India, but the server could be physically located in Hong Kong, China.

Various geo-services determine the location of a proxy based on this IP information, making it crucial for businesses to understand how their chosen proxies will appear to the target audience.

Why IP Geolocation Data May Not Match Across Services

RIPE serves as a central registry for IP address data and their ownership, but private companies also collect their own IP databases, such as MaxMind, IP2Location, and others. Additionally, there are services that don’t maintain their own IP databases but instead purchase data from providers like MaxMind. Examples of such services include Whoer, 2ip, and others.

Geolocation data can vary between services because each one may rely on different databases. In some cases, these databases are not updated regularly, leading to outdated information. This is why, when you purchase proxies from a provider and check their IP addresses using different services, you might encounter conflicting location data.

This article is continuously updated with new information and insights. We regularly add fresh content to keep it relevant and useful. Check back often for the latest updates.

Thanks for reading! We hope this guide gave you a good grasp of proxies and how they can be useful for you. Got questions or thoughts? Drop a comment below — we’d love to hear from you and learn how proxies have helped you out!

This is a constantly updated article, and we’re always adding new information and improvements. If there’s a topic or point you’d like us to cover, feel free to suggest it — we’re open to your ideas!

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