i have just lost to two people on the beginner sever claiming to have mains that are a far higher rank then white, is this legal?

Well that depends if it's true or not they might just be saying that. But if they actually do have main accounts much higher than beginner rank it would be farming and against the rules IMO.

im not sure if thats completly true. if i make an alt account and go into the beginner server its not entirely TC farming.

not sure tho, might wanna check with someone who has better knowledge of that one.

Alt accounts are legal, though before Tori-Agents were to look after beginner servers so no alts have 25+ streak. I, myself visit whitebelt servers on my alt. Though i am doing it for fun. and yeah, check if they had a booster =D if yes - they were just mking easy money, if no - they were just having some fun.