RS Finance Profit Deduction Complaint: A Look at VPS Usage Rules in Trading

BrokersView recently received a complaint from a trader against the broker RS Finance, raising questions about how online trading platforms define and enforce rules around the use of VPS (Virtual Private Server) in trading.

According to the trader, he deposited $20,000 into his RS Finance account and earned approximately $21,687 in profit. However, when he attempted to withdraw his funds, the account was suspended. He then received an email from the platform stating that his "IP address had changed frequently, suggesting possible VPS use," and the platform subsequently deducted his profits unilaterally. The trader expressed confusion, noting that RS Finance's public terms do not explicitly prohibit VPS use, nor do they specify any clear evidence or appeal procedures for such violations.

Regulatory Check of RS Finance

RS Finance claims to operate under two licensed entities - R S Finance Pty Ltd, regulated by the Australian ASIC, and another entity licensed by the Seychelles FSA. Between June and July 2025, BrokersView conducted an independent verification of the broker's credentials and confirmed the validity of its license documents and registered email addresses. Although early records revealed inconsistencies between domain information and regulatory filings, the broker later provided updated materials and domain verification through its registered email. This indicates that RS Finance operates as a legitimately licensed brand with authorization to conduct trading activities.

Nevertheless, regulatory authorization and actual trading practices must be clearly distinguished. Licensing ensures lawful operation, but it does not automatically resolve disputes arising from specific trading tools or technical measures. This complaint underscores the importance of rule transparency and procedural compliance in resolving such issues.

Understanding the Complaint

This complaint involves not only the deduction of profits but also the trader's dissatisfaction with how the matter was handled. The trader reported that his account profits were deducted after submitting a withdrawal request, yet the platform failed to provide concrete evidence - such as connection logs, VPS identification methods, or trading playback related to the alleged irregularities. He questioned why normal transactions and modest profits could be deemed violations, which naturally raises concerns over trust and transparency.

The incident also highlights a broader issue: account suspensions or profit deductions may stem from risk control triggers, not necessarily from actual misconduct. Factors such as IP changes, VPS usage, or automated trading strategies can activate compliance checks. However, transparent evidence chains and appeal mechanisms are essential to determine whether such measures are justified. When these are absent, unilateral deductions often lead to disputes.

VPS in Retail Trading Practice

VPS (Virtual Private Server) technology is widely used in retail forex and CFD trading to host automated strategies (EAs), ensuring 24/7 uptime and lower latency. It is a mature and legitimate tool in the trading industry. Many leading brokers not only allow VPS usage but also offer partnership services:

OANDA: Provides VPS partner services, allowing traders to run automated strategies to optimize execution speed.

IG Group: Supports traders running algorithmic trading on VPS under compliance and risk management standards.

FXCM: Encourages traders to use VPS hosting for EAs to ensure trading continuity and low-latency execution.

At the same time, some brokers restrict VPS usage in specific contexts - for instance, when IP addresses frequently change, originate from high-risk regions, or are used to bypass geographic restrictions. Such restrictions should be clearly stated in user agreements, FAQs, or account-opening terms; otherwise, unilateral deductions may lack procedural fairness.

It's also important to note that VPS is not the same as VPN. VPS is designed to improve trading efficiency, not to hide a trader's location or circumvent restrictions. Platforms should differentiate legitimate technical usage from abuse or manipulation when evaluating related activities.

Rule Transparency

If a broker intends to use VPS activity as grounds for deductions or penalties, its user agreement and FAQs must clearly specify prohibited behaviors, evaluation criteria, and appeal procedures. Transparent rules help traders understand and prevent compliance risks in advance.

Evidence Chain Matters

Before taking actions such as deductions or account freezes, brokers should provide detailed evidence - including IP timelines, trading replays, and VPS identification reports - and give traders an opportunity to respond or appeal. Simply notifying clients by email without substantiating proof often leads to disputes and regulatory complaints.

Risk of Technical Misjudgment

IP address changes can result from benign reasons - such as dynamic home IPs, travel networks, or legitimate VPS hosting. Platforms must distinguish between normal and suspicious behavior to avoid penalizing compliant traders.

BrokersView Reminds You

If a broker uses VPS activity as grounds for profit deductions, it must ensure transparency, sufficient evidence, and procedural fairness. Meanwhile, traders planning to use VPS for automated trading should carefully review and comply with their broker's policies to avoid unnecessary risk-control triggers or misjudgments.

BrokersView will continue monitoring the progress of this case and welcomes further information from traders to help promote transparency and fairness across the trading community.