Disclosure: this page contains affiliate links. If you buy through them we may earn a commission at no extra cost to you.

Direct answer: For a personal VPN or proxy in the US or EU, RackNerd’s 1GB plan at $21.99/yr is unbeatable value; if you are in mainland China, BandwagonHost’s CN2 GIA / GIA-E routes are the standard pick.

A VPS is the cleanest way to run your own VPN or proxy — you control the server, the logs (there are none unless you make them), and the location. But not every VPS is good for this. Here’s what to look for.

What matters for a proxy/VPN VPS

  1. UDP support — WireGuard and OpenVPN need UDP; make sure the provider doesn’t block it (the big three below all allow it).
  2. Location — pick a datacenter near your target users or the services you’re reaching.
  3. Routing quality — if you’re in mainland China, this is the whole game (see BandwagonHost below).
  4. Port 25 and other ports — not needed for VPN, but some providers block odd ports; RackNerd is notably permissive.

Best all-rounder: RackNerd

For a personal VPN in the US/EU, RackNerd’s 1 GB plan ($21.99/yr) is unbeatable value. WireGuard runs happily on 1 GB, and RackNerd doesn’t block UDP or common ports.

See RackNerd's cheap VPN-friendly VPS

Best for China: BandwagonHost

If you’re in mainland China and want a fast, stable tunnel to the US or elsewhere, BandwagonHost’s CN2 GIA / GIA-E routes are the standard answer. It’s pricier, but you’re paying for the route — which is exactly what you need here.

Check BandwagonHost CN2 GIA plans

A note on legality

Running your own VPN/proxy is legal in most places; what you do with it is your responsibility. This is for privacy, bypassing geo-restrictions on content you own, and securing public Wi-Fi — not for anything illegal.

FAQ

Q: What is the best cheap VPS for a VPN?
RackNerd’s 1GB plan at $21.99/yr runs WireGuard comfortably and does not block UDP or common ports.

Q: Does a VPN VPS need UDP support?
Yes. WireGuard and OpenVPN rely on UDP, so pick a provider that does not block it. RackNerd, Hostinger and BandwagonHost all allow it.

Q: Which VPS is best for a VPN in China?
BandwagonHost’s CN2 GIA and GIA-E routes are the standard answer for a fast, stable tunnel out of mainland China.

Q: Is running my own VPN legal?
In most places yes. What you do with it is your responsibility; it is for privacy and securing public Wi-Fi, not illegal activity.

Bottom line: For a US/EU VPN or proxy, RackNerd’s $21.99/yr plan is the value pick; for mainland China, pay for BandwagonHost’s CN2 GIA route.