When comparing Xfce4 terminal vs mintty, the Slant community recommends mintty for most people. In the question“What are the best terminal emulators for Windows?” mintty is ranked 10th while Xfce4 terminal is ranked 19th. The most important reason people chose mintty is:
Mintty is a native Windows wrapper around Cygwin but with added customization features like changing background color, font, transparency, etc.
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Pros

Pro Good for systems with low specs
Like other applications included in the Xfce package, this terminal emulator is very lightweight and doesn't require many resources to run. This makes it perfect for systems that have low specs.
Pro True transparency
You can set the transparency of the Xfce4 terminal on any amount you want, out of the box.
Pro Tabs support
Xfce4 fully supports tabs and tab-based navigation.
Pro Almost everything is customizable
You can configure size, color, background, etc.
Pro Composition effects
Xfce4 terminal takes advantage of xfce composition effects.
Pro Fast rendering
Pro Can be switched to a drop-down terminal
You can configure the Xfce-terminal to act as a dropdown terminal if you want, which makes for greater ease of use.
Pro Support for Cygwin and MSYS
Mintty is a native Windows wrapper around Cygwin but with added customization features like changing background color, font, transparency, etc.
Pro Proper support for scrolling in terminal applications
The mouse wheel in mintty actually scrolls the content in man/less/vim, etc.
Pro Xterm-compatible terminal emulation
Xterm is the standard terminal emulator for the X Window System.
Pro UTF-8 support
UTF-8 allows for the encoding of all possible characters.
Pro Drag and drop makes for ease of use
The drag and drop function in mintty allows the user to move an item quickly and easily.
Cons
Con Cannot set text color for character under cursor to background color
Suppose you have a dark background with a light cursor and light foreground color: the light cursor will cover up whatever character it is on, so that you cannot read it. There is no option to set the foreground color for the character under the cursor to what is normally the background color. Such an option would allow you to read the character under the cursor.
Con Execution in xfce4-terminal - e mode is not always functional
Con Resizing text resizes window
Con No profiles
There's no profiles or profile-based customization in Xfce-terminal.
Con Can't scroll on spamming text
When text generates too fast, you can't scroll it, so you just can't read anything in such moments.
Con Does not support sixel images

Con No multiple tab support
Con Win32 console API performs poorly
Classic Windows console applications don't work well.
Con No native support for WSL
Cygwin is dead. WSL is amazing, yet Mintty is designed around Cygwin and the WSLtty app to connect Mintty to WSL feels like a hack.
