As in all EU countries, forex brokers in Germany are regulated by both the national regulator - BaFin in the case of Germany - and the EU regulator known as the European Securities and Markets Authority (ESMA). Thanks to this system, forex brokers in Germany must adhere to the strict ESMA regulations pertaining to things like negative balance protection and maximum trading leverage for non-professional traders.
As one of the largest countries in Europe, Germany has a sizeable forex trading community on its own. In addition to serving these traders, forex brokers in Germany also serve traders in many other European countries from their German branches.