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ISP Proxies vs. Residential Proxies: Which One Should You Choose?

Thordata-ISP Proxies vs. Residential
author anna

Anna Stankevičiūtė
Last updated on
2025-10-17
 
5 min read
 

When selecting proxies for your projects, ISP proxies and residential proxies are two of the most common options you will encounter. You may have noticed that they sound similar, but using the wrong one can directly lead to task failures or wasted funds. Below, we will outline their core differences, strengths, and weaknesses, helping you make the best decision based on your specific business goals—whether it’s data scraping, market research, or ad verification.

Are you ready? Let’s explore together!

What is an ISP Proxy?

An ISP proxy is a type of proxy that routes user traffic through servers owned by an Internet Service Provider (ISP), combining the speed of datacenter proxies with the anonymity of residential proxies. It is essentially a server operated by an ISP, typically located in a data center, but using IP addresses from the ISP, making it appear like a regular home or business connection when accessing websites. This type of proxy excels in speed and reliability because it directly utilizes the ISP’s infrastructure, reducing latency caused by intermediate hops.

The working principle of ISP proxies is based on user requests being relayed through ISP servers, thereby hiding the user’s real IP address. When you use an ISP proxy, your traffic is first sent to the ISP proxy server, which then forwards it to the target website, making the target site see the ISP’s IP address instead of your original IP. This process is similar to using a high-speed relay station, ensuring quick data transmission while providing a degree of anonymity.

👉 In short, the connection path for an ISP proxy is: User → ISP Proxy Server (Authorized ISP IP) → Target Website.

What is a Residential Proxy?

A residential proxy is a proxy server that uses real residential user IP addresses, routing traffic through a residential network distributed around the globe to simulate typical internet user behavior. This type of proxy obtains resources directly from IP addresses assigned to home users by ISPs, making it harder to detect when accessing strictly protected websites, as it appears to be a genuine personal user connection. Residential proxies are often implemented through peer-to-peer networks or volunteer devices, providing high anonymity and geographic diversity.

The working principle of residential proxies involves routing user traffic through a residential IP network, with these IP addresses coming from actual home broadband connections. When you use a residential proxy, your request is first sent to a residential proxy node, which then accesses the target website using that node’s IP address. The target website perceives this as a visit from a typical residential user, thereby reducing the risk of being blocked. This mechanism is akin to borrowing a neighbor’s address to send letters, ensuring that the sender’s identity is not easily traceable.

👉 In short, the connection path for a residential proxy is: User → Residential Proxy Network (Real Home IP) → Target Website.

ISP Proxies: Pros and Cons

ISP proxies combine speed, reliability, and authenticity, making them an ideal choice for balancing performance and privacy in professional-level online activities. However, they are not perfect, especially with certain limitations in pricing and scalability.

Pros:

●  High Speed and Low Latency: Since ISP proxies are based on ISP infrastructure, they typically provide faster connection speeds.

●  Strong Stability: ISP proxy servers are managed by professional ISPs, ensuring high uptime and reliable connections, reducing the risk of interruptions.

●  Quality Bandwidth Resources: Server-grade network performance reduces latency and improves task efficiency.

●  Easy Integration: Many ISP proxy services offer simple APIs and documentation, making it easy for developers to quickly deploy them into existing systems.

Cons:

●  Higher Cost: ISP proxies are often sold as static IPs, meaning you can use the same IP address for an extended period, leading to increased costs from more expensive IP sources.

●  Easily Detected: Although ISP proxies use ISP IPs, some advanced websites may identify these IPs as coming from data centers, limiting access or triggering security mechanisms.

●  Geographical Limitations: The IP addresses of ISP proxies may be concentrated in specific regions, lacking the global distribution of residential proxies, which limits location-specific tasks.

●  Lower Anonymity: While they hide the user’s IP, the source servers of ISP proxies may be traceable, making them unsuitable for highly sensitive operations.

●  Potentially Affected by ISP Policies: Since they rely on ISPs, the performance of proxies may be influenced by the service provider’s policies or network congestion.

Residential Proxies: Pros and Cons

Residential proxies are known for their high level of anonymity and resistance to detection, but they may not match ISP proxies in speed and cost, requiring careful consideration based on use cases.

Pros:

●  High Anonymity and Low Detection Rate: Residential proxies use real residential IPs, making access appear like ordinary users, significantly reducing the risk of being blocked by websites.

●  Global IP Distribution: These proxies cover a wide range of geographic locations, supporting location-specific tasks like localized content access or ad verification.

●  Strong Anti-Ban Capability: Since the IPs come from real users, residential proxies are harder for anti-bot systems to recognize, making them suitable for scraping strictly protected websites.

●  Flexibility and Scalability: Many residential proxy networks support dynamic IP rotation, adapting to changing needs such as large-scale data collection.

Cons:

●  Slower Speeds: Residential proxies rely on home networks and may be affected by user device performance, leading to higher latency, making them unsuitable for real-time applications.

●  Higher Costs: Compared to ISP proxies, residential proxies are generally more expensive due to the scarcity of IP resources and complex maintenance.

●  Variable Reliability: Based on volunteer networks, residential proxies may experience unstable connections or unavailable nodes.

●  Ethical and Compliance Risks: Using residential proxies may involve privacy issues, requiring assurance that providers comply with relevant regulations to avoid legal disputes.

Best Use Cases for ISP Proxies

ISP proxies are best suited for applications that require high speed, stability, and cost-effectiveness, particularly excelling in handling large-scale data or protected websites. Overall, they provide consistent identity simulation but may not be suitable for highly anonymous tasks.

🌟 Ideal For:

●  Accessing Protected Websites That Require Consistent Identity: ISP proxies can simulate stable user sessions, making them suitable for websites that require long-term logins, such as Facebook, LinkedIn, Ebay, Shopee, etc.

●  Streaming and Content Distribution: ISP proxies provide fast connections, supporting video streaming or file downloads without being easily throttled.

Use Cases:

Which of your businesses should choose ISP proxies?

●  E-commerce Price Monitoring: ISP proxies can quickly scrape competitor prices, ensuring data timeliness without triggering anti-scraping mechanisms.

●  SEO Ranking Tracking: With ISP proxies, you can consistently access search engines to collect keyword data and optimize website performance.

●  Ad Verification: ISP proxies help verify whether ads are displayed accurately, providing reliable data sources.

●  Network Security Management: Companies can use ISP proxies to monitor internal network traffic, detect abnormal behavior, and ensure system security.

Best Use Cases for Residential Proxies

Residential proxies excel in scenarios that require high anonymity and real user simulation, especially suitable for handling strict protection mechanisms or location-sensitive tasks. Overall, they can bypass advanced detection systems, but may sacrifice speed and cost efficiency.

🌟 Ideal For:

●  Accessing Websites with Strict Protection Mechanisms: Residential proxies can simulate real user behavior, making them suitable for scraping websites with tight anti-bot systems, such as social media, Wayfair, sneaker stores, etc.

●  Location-Sensitive Tasks: Due to global IP distribution, residential proxies support access to localized content, such as region-restricted streaming services.

Use Cases:

Which of your businesses should choose residential proxies?

●  Social Media Automation: Residential proxies can securely manage multiple accounts, avoiding being flagged as suspicious activity by the platform, ensuring operational continuity.

●  Travel and Ticket Aggregation: With residential proxies, you can access price information from different regions to get the best travel deals.

●  Academic Research Data Collection: Residential proxies support large-scale scraping of academic websites to obtain real data without being IP blocked.

●  Brand Protection Monitoring: Companies use residential proxies to simulate ordinary users, detecting infringing content and maintaining brand reputation.

ISP Proxies vs. Residential Proxies: Main Differences

Choosing between ISP proxies and residential proxies fundamentally hinges on understanding their opposing core characteristics: one sacrifices some anonymity for extreme performance, while the other sacrifices some speed and cost in pursuit of complete invisibility. This fundamental difference arises from their IP address sources, network infrastructure, and design philosophy. Making the wrong choice can result in your tasks being frequently blocked or overspending in unnecessary areas. Therefore, a deep understanding of their core differences is the cornerstone of building an efficient and stable network operation strategy.

🎥 You can quickly understand the differences between the two through the following video.

📌 The table below clearly presents a direct comparison of the two in key dimensions.

Feature

ISP Proxies

Residential Proxies

IP Address Source

Owned and allocated by Internet Service Providers (ISPs), but hosted on data center servers.

Physical devices from real residential users worldwide, allocated by local ISPs.

Nature of IPs

Legally owned IPs, located in a data center environment, considered “high-quality data center IPs.”

Pure, real residential IP addresses.

Speed and Performance

Extremely high. Based on ISP infrastructure, with very low latency and stable connections.

Moderate. Depends on home bandwidth and device status, which may be unstable.

Anonymity and Detection Rate

Moderate, may be detectable.

Extremely high. Simulates real users, with the strongest resistance to detection.

Cost

Lower, suitable for budget-conscious users, cost-effective.

Expensive. Global real residential IP resources are relatively scarce.

Geographical Coverage

Limited. Providers mainly deploy servers at key network hubs.

Extremely broad. Can cover almost all countries and cities globally.

Best Use Cases

Large-scale rapid data scraping, streaming.

Scraping social media, price aggregation.

IP Rotation and Management

Typically offers static IPs or on-demand rotation, allowing for more precise session control.

Usually provides a large IP pool and automatic rotation, with each request potentially using a different IP for greater anonymity.

Integration Difficulty

Low, easy to deploy.

Moderate, may require configuration.

Ethics and Compliance

Less controversial, as the IPs are legally owned and controlled by the service provider.

May involve gray areas, depending on how the provider obtains consent from residential users.

Decision Tree: Which One Should You Choose?

Start thinking about your main goals:

🔒 Need high anonymity and resistance to detection? → Residential proxies.

⚡ Task requires high speed and stable connections? → ISP proxies.

 🔍 Facing strong anti-bot detection websites? → Residential proxies.

📊 Want to run long-term projects (like account maintenance)? → ISP proxies.

🌍 Involved in location-specific content? → Choose residential proxies.

🔄 Large-scale data scraping with a focus on speed? → ISP proxies are more suitable.

🛡️ Accessing strictly protected websites like social media? → Residential proxies are the preferred choice.

💰 Monthly budget under $100? → Prioritize ISP proxies.

👉 For Individuals: People typically seek trust, authenticity, and ease of use. ISP proxies provide you with flexible and stable connections for daily activities. When you need the highest level of trust and want to avoid CAPTCHAs or bans, residential proxies are your ideal choice.

👉 For Small Businesses: Small businesses need to be budget-conscious while obtaining reliable services. ISP proxies are generally cheaper and more stable, making them a wise choice for most small teams. By choosing them, you will benefit from static IPs, high trust levels, and fast speeds, helping you run data scraping, automation, or monitoring tasks smoothly without frequent interruptions.

👉 For Enterprises: Enterprises often need to handle massive datasets, conduct global operations, and ensure strict security measures. You should look for proxies with low latency, high uptime, and strong anonymity. ISP proxies are excellent for performance-driven tasks, while residential proxies excel in IP diversity and location coverage.

How to Choose a Proxy Provider?

Choosing a proxy provider is much more than just comparing prices; it directly impacts the stability, security, and ultimate outcomes of your core business. A wrong decision could lead to task failures, data breaches, or wasted resources, so a systematic evaluation framework is needed to make an informed choice.

1. Reliability

Reliability is the core of proxy services, directly determining whether your business can operate continuously. You should pay attention to the provider’s Service Level Agreement (SLA), which clearly commits to uptime, typically above 99.9%. A reliable provider must have strong network redundancy and efficient failover mechanisms, meaning that if a server or data center encounters issues, traffic can automatically and seamlessly switch to backup nodes, ensuring uninterrupted service.

2. Speed and Performance

The speed and performance of proxies directly affect task efficiency and user experience. When evaluating, you need to consider the provider’s server infrastructure:

●  Network Tier: Does the provider peer directly with Tier 1 network operators? This minimizes latency and packet loss.

●  Server Hardware: Modern hardware is essential for handling high concurrent requests.

●  Geographical Location: Does the server distribution cover your target area? The closer the servers are, the typically faster the speed.

Many quality providers offer real-time speed testing tools or trial credits, allowing you to verify performance before purchasing.

3. Support and Documentation

Timely, professional customer support is crucial when you encounter technical issues or integration difficulties. Excellent support is reflected not only in response speed but also in problem-solving capabilities. Additionally, comprehensive and clear technical documentation and API references can significantly reduce the integration difficulty and learning curve for your development team, enabling you to quickly get started and fully utilize all features of the proxy service.

4. Pricing and Scalability

The pricing model of proxies should be transparent, flexible, and aligned with your business growth. Be wary of hidden fees, such as setup fees or overage charges. An ideal provider should offer various plans, from pay-as-you-go to unlimited connections, and support smooth upgrades, allowing you to easily adjust resources based on business needs without changing the entire service architecture.

5. Compliance and Security

In today’s environment of increasingly strict data privacy regulations, compliance and security are non-negotiable. You must confirm that the provider has a clear Data Processing Agreement (DPA) and complies with major regulations such as GDPR. On the security front, the provider should offer:

●  End-to-end encryption to ensure secure data transmission.

●  Secure authentication methods, such as IP whitelisting or username/password combinations.

●  A clear privacy policy that commits to not logging or minimizing the logging of user activity.

Thordata’s Proxy Services

Thordata stands out in the 2025 proxy market by providing exceptional solutions in both ISP proxies and residential proxies.

ISP Proxies:

●  On-demand access to a large number of IPs.

●  Permanent website sessions.

●  Unlimited bandwidth.

●  Fast static IPs.

●  More cost-effective at $0.75/IP.

●  Tiered discounts, such as 20% OFF, 26% OFF, 46% OFF, 50% OFF, etc.

Residential Proxies:

●  Over 60 million ethically sourced residential IPs.

●  Uptime of up to 99.99%.

●  Average success rate of 99.82%.

●  Supports sticky sessions and rotating sessions.

●  Average response time of 0.41 seconds.

●  Pricing starting at $1.80/GB.

👍 Enjoy Thordata’s free trial now!

Final Thoughts

In summary, ISP proxies and residential proxies each have their advantages, and the choice depends on your specific business goals, budget, and risk tolerance. We recommend starting with a trial to assess performance before making a long-term decision, ensuring that the proxy service can effectively enhance your network operation efficiency. For example, Thordata offers users a free trial to help them experience the proxies before purchasing a plan. Regardless of which type of proxy you choose, continuous monitoring and strategy adjustment are key to success.

We hope the information provided is helpful. However, if you have any further questions, feel free to contact us at support@thordata.com or via online chat.

Frequently asked questions

Are ISP proxies detectable?

 

Yes, ISP proxies can be detected by advanced websites because they use ISP IP addresses, which may be flagged as data center sources, triggering security mechanisms.

Are ISP proxies better than residential proxies?

 

There is no absolute answer to this question; it entirely depends on your specific needs. ISP proxies generally offer advantages in speed, stability, and cost, while residential proxies excel in anonymity, resistance to bans, and geographical diversity. You could say there is no “better” option, only the choice that is “more suitable” for your specific task.

When would I choose ISP proxies over residential proxies?

 

You would choose ISP proxies when your tasks require high-speed, stable connections and have a limited budget, such as for large-scale data scraping or streaming applications.

What is the main difference between ISP proxies and residential proxies?

 

The core difference lies in the source and nature of the IP addresses. ISP proxies use IP addresses legally owned by Internet Service Providers, but these IPs are allocated and hosted on data center servers. They can be understood as “high-quality, legitimate data center IPs.” Residential proxies use IP addresses from real home broadband networks worldwide, allocated by ISPs to individual residential users, simulating the internet behavior of ordinary residents, thus offering very high anonymity.

About the author

Anna is a content specialist who thrives on bringing ideas to life through engaging and impactful storytelling. Passionate about digital trends, she specializes in transforming complex concepts into content that resonates with diverse audiences. Beyond her work, Anna loves exploring new creative passions and keeping pace with the evolving digital landscape.

The thordata Blog offers all its content in its original form and solely for informational intent. We do not offer any guarantees regarding the information found on the thordata Blog or any external sites that it may direct you to. It is essential that you seek legal counsel and thoroughly examine the specific terms of service of any website before engaging in any scraping endeavors, or obtain a scraping permit if required.