The sensitivity of laser interferometers used for the detection of gravitational waves (GWs) is limited by quantum noise of light. An improvement is given by light with squeezed quantum uncertainties, as employed in the GW detector GEO 600 since 2010. To achieve simultaneous noise reduction at all signal frequencies, however, the spectrum of squeezed states needs to be processed by 100 m-scale low-loss optical filter cavities in vacuum. Here, we report on the proof-ofprinciple of an interferometer setup that achieves the required processed squeezed spectrum by employing Einstein-Podolsky-Rosen (EPR) entangled states. Applied to GW detectors, the costintensive cavities would become obsolete, while the price to pay is a 3 dB quantum penalty.