VPN is not the same as VPS.
iqoptions terms of service states:
"Frequent access and logins to the Trading Account via different IP addresses from different countries and/or via the use of VPN is an indication that shall reasonably lead the Company to believe that paragraphs 9.2.1 and 9.2.6 have been breached."
"28. Termination of the Agreement
2. The Company shall be entitled to terminate this Agreement immediately, close all open positions, block the Client’s account, and return any remaining funds (if applicable) without giving prior notice under the following circumstances:
In case the Client uses and/or there are indications that lead the Company to reasonably believe that the Client uses different IP addresses from different countries and/or VPN during the course of executing any transactions and/or trades through the Trading Account and/or the provision of the Services. Whether the Client has provided notice to the Company for any change to its IP address and/or of the use of VPN is irrelevant."
There is no mention of VPS. However, use of VPS that is outside of your country, and possibly switching back and forth between your personal computer and the VPS could indeed be prohibited according to the above (different IPs).
Brokers have an obligation by law and regulators to prevent money laundering and fraud. Therefore limiting the use of VPN and even VPS makes perfect sense.
As to group trading and group signals, this is the place where you ask the chat rep to kinndly point you to the exact place in their legal documents. I could not find anything that specifically addresses that. They have a seperate page for chat conduct which includes this:
"On our website, it is prohibited to:
1. Promote any services without the prior consent of the Customer Support Team.
2. Promote and/or advertise any goods and/or services.
3. Make financial and/or other deals in chat rooms."
Point 3. allows for a wide interpretation, but that is limited to their chat. There is no specific mention of FB, signals, trading groups, etc from a quick search through several of their docs. So if someone were a member of a signal group or get signals somewhere and that is in breach of terms, then this warrants proper written information by the broker. That is the point when you need to elevate this to a manager to get the information you need. The answer will probably be this:
"7. Without derogation from the above, the Company reserves the right, acting reasonably, to suspend or refuse access to and use of the Trading Platform to anyone at its sole and absolute discretion."
All brokers have this. Every business does. No shirt, no shoes, no service.
Basically you should check with the broker how you trade before you get started to ensure there won't be any surprises later. Then you can also point out that if group trading or the use of signal services is specifically prohibited, it should be spelled out in the terms. They are not required to actually do so because of that paragraph 7.
Bottom line is, read and know the terms. The key element of these complaint stories that keeps repeating itself.
PS - I don't trade with iq (yet).
One more - digitalocean mentions 195 countries on their website. So they probably have servers in your country which might fulfill the iq requirements to be local. That said, it is a US based company, so technically there may be a legal snag for a US based company enabling US-non-legal BO trading... There are several VPS services that specialize in MT4, so there are alternatives. Besides finding out how you can speed up your connection. Or moving (what I will do this year for that very reason, it is worth it to me).
The rep is correct in not understanding/replying any better to why you would need to ok the use of VPS for your MT4 when actually you would need VPS for a faster connection to access their online platform. They should not care how or where you run your MT4 from, which is completely separate from their platform - unless you want to integrate your MT4 with iq via VPS so that you can trade directly from your MT4. Now that is a completely different question. Just because you can create MT4 access via an api that does not mean it is in accordance with iq terms. Rep said, integration with an off-site MT4 isn't possible. So assume that doing so breaches their terms unless they tell you specifically that there is no breach. In order to find out you need to formulate your question accordingly, ideally to a higher up.
Btw, you attitude towards the rep is rather hostile. Expect to get what you give. These reps work for minimum wage in some sweat shop with about as much interest in their job as you would have doing the same. They are still people. An attitude of kindness tends to get much better responses and tends to produce a sincere desire to help you. As a default people like to help. Except when they get shat on. So be the kind one. You may be the only one like that they get that day, possibily even that week. So easy to get treated like gold... You get what you give.