This is a first for me. I posted a question and no-one answerd it.
Well I've done some research and now I know the answer so I will post it because I see a few people have read this maybe in hopes to find the answer so here it is.
After compounding (if you do) then the next step is to polish. Sometimes during compounding you actually leave some swirl marks or if you already have swirl marks from various sorces.
Anyways the differance is that the swirl remover rounds the edges of the scratches thus reducing the appreance of swirl marks due to the lack of reflection in the edges of the scratch, and some even have a filller of silicon or such things that fill in the scratch aswell. This is more of a tempoary solution rather than a fix. If you don't seal after this step your work and great finish won't last long in the elements.
The finishing compound actually takes care of the problems(removes the scratches) so there is no coming back to haunt you. Usually has more grit than the swirl memover. Takes more skill to use but I think IMO that it is a better solution.