NTFS Vs. FAT32 FILE SYSTEM : some basic info NTFS (NT File System) or FAT32 (File Allocation Table) File System are the two alternatives : You Should Use FAT32 if : -u want to install more than one operating system on your computer. -ur hard drive is smaller than 32GB. Go for NTFS if : -u want enhanced file security. -u need better disk compression. -u r running only one operating system. -ur hard drive is larger than 32GB though the speed difference, for larger drives between the two is minimal, NTFS is the newer, more stable and more secure file system. if you format your hard drive in NTFS and password protect it, no one can access the information on the drive without the correct password, even if they physically steal it. Thus NTFS is the prefered alternative.