Choosing a secure method for file transfers is a critical decision for any business. In your research, you'll often encounter two options that sound nearly identical: Secure FTP and SFTP. While their names are similar, they are built on completely different security protocols. Understanding these distinctions is essential for making an informed choice that protects your company's data.
What is Secure FTP?
Often called FTPS, Secure FTP is an extension of the classic File Transfer Protocol, adding a crucial layer of security through encryption. It uses the same technology that protects your daily web browsing—Secure Sockets Layer (SSL) and its successor, Transport Layer Security (TLS)—to safeguard data as it moves between systems. This means that while the underlying file transfer process is familiar, the information itself is scrambled and unreadable to anyone who might intercept it.
At its core, FTPS works by establishing a secure channel before any data is exchanged. It maintains the traditional FTP structure of using two separate connections: one for commands and another for the data itself. Here are a few key points to understand:
- It builds directly on the well-known FTP technology, making it a familiar option for many IT teams.
- Security is provided by SSL/TLS encryption, the industry standard for securing network communications.
- It can operate in two modes: explicit, where a connection is explicitly requested to be secure, or implicit, where security is assumed from the start.
What is SFTP?
On the other hand, SFTP, which stands for SSH File Transfer Protocol, is a completely separate protocol designed from the ground up for security. It doesn’t build on the old FTP framework; instead, it operates over the Secure Shell (SSH) protocol—the same trusted technology used to securely manage servers and network devices remotely. This fundamental difference means SFTP was built with security as its primary function, not as an add-on.
Furthermore, SFTP handles all operations over a single, secure connection. Both commands and data files travel through the same encrypted channel, which can simplify passing through firewalls compared to the dual-channel approach of FTPS. Here’s a quick summary of what makes SFTP unique:
- It is an entirely different protocol from FTP, not just a secured version of it.
- Security is provided by the underlying SSH protocol, which is standard for secure remote administration.
- It uses a single data channel for all communications, making it easier to manage on a network.
Key Differences Between Secure FTP and SFTP
Authentication Methods
When it comes to verifying user identity, the two protocols take different paths. FTPS often relies on usernames and passwords and can also use X.509 certificates for authentication. This approach is straightforward but can be less secure if weak passwords are used.
In contrast, SFTP primarily uses SSH key pairs. This involves a private key stored on the client machine and a public key on the server. This key-based method is significantly more secure than password authentication and is ideal for automated, script-driven file transfers between systems without human intervention.
Network and Firewall Configuration
Another practical difference emerges in how they navigate network firewalls. Because FTPS uses two separate channels—one for commands and another for data—it can create complications for network administrators. Configuring a firewall to allow traffic across a dynamic range of ports for the data channel can be complex and may require opening more ports than desired.
SFTP simplifies this greatly by using a single connection on one port (usually port 22) for all communication. This includes commands, data transfers, and acknowledgments. For IT teams, this means a much simpler and more secure firewall setup, as only one port needs to be managed.
Command Readability
Finally, the protocols differ in how their commands are structured. FTPS commands are human-readable, a direct inheritance from the original FTP standard. While these commands are encrypted in transit, their underlying structure is text-based. SFTP, however, uses binary-formatted commands that are packed within the SSH protocol. This makes the data exchange more compact but means the commands themselves are not intended to be read by humans.
Security Features of Secure FTP and SFTP
When you look closer at their security, the main distinction comes down to design philosophy. Secure FTP adds a layer of protection to the original FTP protocol using SSL/TLS encryption. This is the same trusted technology that secures your connection to banking websites, so it's certainly robust. It effectively wraps the data transfer in a secure tunnel, protecting it from eavesdroppers. However, the security is an addition to an older framework.
In contrast, SFTP’s security is built-in from the ground up because it operates as a subsystem of the SSH protocol. From the moment a connection is initiated, everything—including the initial login, commands, and the files themselves—is encrypted within a single, secure channel. This integrated approach eliminates potential configuration errors that can sometimes occur with FTPS's dual-channel setup.
Furthermore, both protocols provide data integrity checks. This means they verify that the files you send are the exact same files that arrive at the destination, with no modifications or corruption along the way. This is a critical feature for ensuring the reliability of your business's file transfers.
Performance and Speed Comparison
When it comes to speed, the differences between FTPS and SFTP are often more nuanced than you might expect. In a direct comparison under ideal network conditions, FTPS can sometimes be slightly faster. This is because its data channel is dedicated purely to transferring the file, without the extra processing layer that SFTP requires.
SFTP, in contrast, works by breaking data into packets and sending them through the encrypted SSH tunnel. This packaging and un-packaging adds a small amount of overhead to the process. While this makes the transfer inherently secure and reliable, it can introduce a minor delay compared to the more direct approach of FTPS.
However, for most real-world business scenarios, this performance difference is practically unnoticeable. Factors such as network bandwidth, latency, and server load have a much larger influence on transfer times than the protocol choice. Both FTPS and SFTP are highly efficient and fully capable of handling the large file transfers required by modern enterprises without creating a bottleneck.
Cost Considerations for Enterprises
When it comes to budget, the initial software cost for either protocol is often not the deciding factor. Both Secure FTP and SFTP have plenty of free, open-source server and client options available, meaning you can get started without a significant upfront investment. Commercial versions with dedicated support are also available for both, but the core technology is accessible.
The real cost difference appears in implementation and maintenance. Because FTPS requires two separate channels, it can demand more time from your IT team to configure firewalls correctly and troubleshoot connection issues. In contrast, SFTP’s single-port design is simpler to manage, potentially reducing labor costs associated with setup and ongoing network administration. For a busy IT department, that saved time is saved money.
Making the Right Choice for Your Business
So, which protocol is right for you? The choice depends on your company’s priorities and existing infrastructure. For most businesses, SFTP is the recommended path due to its superior security model and simpler firewall configuration. Its use of a single port and key-based authentication makes it a more modern and manageable solution for secure, automated file transfers.
However, if your organization has a long-standing investment in FTP systems, FTPS can be a practical way to add necessary encryption without overhauling your entire workflow. It provides strong security while working within a familiar framework.
Need Help Managing Your Network? Lightyear Can Help

Just as choosing the right protocol is vital for secure data transfer, managing your entire network infrastructure efficiently is key to your business's success. By automating network service procurement, inventory management, and bill consolidation, Lightyear takes the pain out of telecom infrastructure management.
The hundreds of enterprises who trust Lightyear achieve 70%+ time savings and 20%+ cost savings on their network services. Sign up for a free account to get started.
Frequently Asked Questions about Secure FTP vs SFTP
Can I use my regular FTP client for these secure protocols?
Generally, no. You need a client that explicitly supports either FTPS or SFTP. While some applications handle multiple protocols, a basic FTP client lacks the necessary encryption capabilities to establish a secure connection with either.
Which protocol is better for regulatory compliance like HIPAA or PCI-DSS?
Both can be compliant, but SFTP is often favored. Its integrated security and simpler network footprint make it easier to audit and prove that data is protected end-to-end, which is a key part of meeting strict compliance rules.
Is one protocol better suited for automated file transfers?
SFTP is the clear winner for automation. Its use of SSH key-pair authentication is ideal for secure, script-driven transfers between systems without needing to store or manage passwords, which is a significant security advantage.