This tool will scan and analyza your current IP Address and Connection and let you know if you are using any type of a proxy to connect to this website. Unfortunately not all proxies can be detected if they are setup to Hide Your IP completely.
When you use a VPN Service, you are in a way using a proxy server to connect to the internet. The way a proxy server works is that you force your internet connection to route through another server so your IP Address will show up as that servers IP Address. It is a simple way to hide your IP Address from prying yes.
There are a ton of FREE proxy servers all over the world you can use. You can do a simple search on your favorite search engine for "Free Proxy List" and you will find a lot of lists out there others have compiled. You can also check these sites for a great list of free proxies. (Free-Proxy-List.net) & (HideMy.name)