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RedGrittybrick

Choice

Some people say that JPEG is always better than GIF.

To me, with these images, GIF gives as good quality as JPEG. Even for photos! For plain text or flat-colour drawings, GIF gives a better quality result. GIF is nearly always smaller than uncompressed JPEG. Compressed JPG wins on size (not quality) for these photographic images.

Conclusion

Don't use JPEG for text! Use JPEG for photos.

Formats

GIF

Oldest. Only 256 colours. Transparency. Animation. Patent issues.

JPG

Lossy. No transparency. No animation. Designed for photos.

PNG

Latest. Alpha transparency. Lossless.