It means that you will be neither charged nor paid swaps on your positions. Swap is the interest rate difference between the long currency and the short currency.
The advantage is that you will not be charged money for the trades with negative swaps.
The disadvantage is that you will not be paid money for the trades with positive swaps.
Swap-free accounts were initially created for people, who practice Islam and, therefore, are prohibited from earning interest on their giving (that's why they are also called Islamic or Shariah accounts). These accounts made it possible for Muslims to trade Forex according to Islamic law, and some brokers even request documentation to verify that the client is of Islamic faith.
I'm not familiar with the procedure of opening a swap-free account and not sure what documents are needed for verifying Islamic faith. But I didn't just make it up. I came across this requirement when checking conditions of different brokers and was surprised as well.
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