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Is there any good zip application for Mac OS X similar to 7-Zip (Windows only) which is free, compatible with many formats, and offers encryption options?

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Check out Keka - the free Max OS X file archiver enter image description here

With 7z and Zip you will have the opportunity to create password encrypted files to better protect your privacy. It's as easy as write your password in the box, and drag and drop files to Keka in the dock.

Another way is to run the command in your

$ zip -e <files>

After the command you will be prompted for a password. Instead of the single files you can specify a folder, too.

I don't know of any more apps that allow you to create archives with many formats. For decrompression there are multiple great apps (The Unarchiver, Stuffit Expander). You can give 7zipX a try, too.

Some paid alternatives:

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+1 - Great answer. I'll check out Keka now. Cheers. – boehj May 16 '11 at 6:28
What encryption does zip -e use? AES? The man page only says that it encrypts with the password entered. – Bryson Aug 5 '11 at 0:06
Couldn't find anything. But man page also states And where security is truly important, use strong encryption such as Pretty Good Privacy instead of the relatively weak standard encryption provided by zipfile utilities. So I guess you should care about encryption yourself. – timbooo Aug 5 '11 at 8:12

The unarchiver and simplyRAR in addition to keka.

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