As I understand it, the Ferengi were set up at the beginning of TNG to be the next "big bad" of the galaxy, and their capabilities are described as being equal to the Enterprise's. That being said, they do so much to violate intergalactic law, not to mention irritate and antagonize everyone they encounter, that it seems stunning that no one has launched a photon torpedo down their throats out of pure frustration.
In one episode they attempt to assassinate a Federation captain using a stolen Federation ship, in another they attack two Federation ships during a routine training exercise just because they thought there might be something they could steal. They routinely threaten, bribe, and falsely accuse other races and individuals, regardless of their power or rank. They've kidnapped Betazoid royalty and Federation personnel, they've deliberately tried to destroy property they couldn't purchase, and they don't even seem to apologize for (or even deny!) most of their actions.
I've only seen TNG, not DS9 or Voyager, but does anyone ever comment on why the Ferengi haven't been the subjects of a Klingon or Romulan genocide, or how they seem to commit so many acts of war without ever actually going to war? Even if we assume they are as powerful as the Federation (which the shows seem to walk back a little after their first introduction), they've committed plenty of offenses which would justify a Federation response, let alone a response from one of the more militant galactic powers.
Answer
The Ferengi fill a valuable position in the Alpha Quadrant, trading useful resources and technology back and forth between various powers, even those that may be at war with one another. The original attempt to establish them as villains in TNG failed miserably, and they were ret-conned into an almost comical species of greedy traders.
A similar position existed in our own world, with European traders, who would have been an easy target for Japanese or Chinese warlords, engaging in trade between the two warring powers in the period of European expansion. There was no reason for the stronger Chinese or Japanese powers to crush the much weaker Europeans - though obviously this would have been isolated to the European trading posts, as the Chinese and Japanese had no way of attacking Europe itself - as they stood to gain more from leaving them alone to continue trading.
This is similar to the situation with the Ferengi in Star Trek. Due to their willingness to trade with anyone - they even trade with the Dominion - and their expressed desire to maintain neutrality, it makes more sense for the various powers in the Alpha Quadrant to maintain Ferenginar as an independent state, rather than to destroy or conquer it. Especially as the Ferengi, while not warlike, are more than capable of defending themselves in the event of an attack, and could easily call upon their trading partners to defend them from outsiders.
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