Stain penetrates into the wood grain, providing protection from the inside out while letting the wood’s natural texture show through. Paint sits on top of the wood surface, creating a thicker barrier but hiding the wood grain completely.
For most wood fences, stain is the better choice because it handles wood movement better as temperatures change. Paint can crack and peel when wood expands and contracts, while stain moves with the wood.
Stain also requires less surface preparation for reapplication. When it’s time to re-stain, you can usually apply new stain directly over the old. Paint often requires scraping and more extensive prep work.