File Security

• NTFS allows administrators to set file permissions for individual files, designating which users have authority to use and alter them. It tracks these permissions, as well as each file's size, date modified, and other information in a file called the master file table (MFT). FAT32 lacks these security features.
  
  

File Compression

• Another feature unique to NTFS is its ability to compress files individually. Compressed files take up less space on a disk drive, but require additional processor cycles to decompress.
  
  

Reliability

• NTFS introduced new features that enhanced file integrity and prevented many of the read and write errors that were common with FAT file systems. This is sometimes referred to as fault tolerance.
  
  

Compatibility

• FAT32's advantage over NTFS is that it is compatible with most operating systems. NTFS is not compatible with Windows 95, 98, ME, or most Mac and Linux operating systems.
  
  

Conclusion

• NTFS is better for large drives and any place where file security is important. FAT32 is better where compatibility is important. Older FAT file systems (FAT12, FAT16) are obsolete.