Well, technically if a broker adopts OTC model, the broker is not a broker but a market maker.
A Broker is an entity which transmits the orders from clients to exchange market. Brokers’ job is to be a mediator between clients and markets and providing them a solution to get access to the markets.
In case a broker is being a Market Maker, the broker will be covering all trades for clients.
This means that the broker will hedge your positions as in if you buy EUR/USD, the broker will sell the same amount of EUR/USD at the same time.
So in this case, there is a 100% conflict of interest between brokers and traders. In another word, the broker makes profits when traders lose their fund.
And generally speaking about more than 80% of traders will lose their invested funds in FX, the brokers should be making money in more than 80% probability.
So the reason why some brokers are Market Makers(OTC) is because it makes more money for brokers.
Also, you can check the regulation and legal documents in the “About Tickmill” section.
Tickmill’s goal is to make people successful and happy, and they have all the necessary instruments: a professional team of portfolio and risk managers, client support service, trading platforms and more.