ER tool holders
ER collets are the most common collet in Kirby because they are simple to use and can fit a wide size range. However they are not the most high performance collets.
Some ER collets are designed to be used with through tool coolant and have O-rings or shorter grooves that prevent coolant flow through the collet. These are used for thru coolant drills, where you want all the coolant pressure to go through the drill.
ER collets are not designed for coolant flow through the collet so if you turn on through spindle coolant it gets sprayed in a cone, mostly away from the tool. This isn't ideal but spraying coolant through the ER collet can still work and is helpful in certain situations such as drilling and deep cuts with an endmill.
When using ER collets up make sure to clean everything and fill 80% of the collet with tool.
PG tool holders
PG collets have better runout and clamping force than ER collets but they can only fit exact sizes of endmill and cannot be used with drills.
Some PG collets also have extra grooves on the inner bore to allow thru collet coolant. This is an excellent feature for clearing chips, especially in deep or tight pockets.
If you are using a thru coolant drill don't use a thru coolant collet because you want all the pressure to go through the drill.
When using these holders it is important to put the shank deep into the collet to prevent damage to the holder. When the hydraulic press presses the tool in it creates a large radial force on the collet, which if unsupported by a tool inside can bend part of the collet.
If the tool is not deep enough in the PG collet, thru spindle coolant can flow through the grooves which is not ideal.
If you need more stickout, use smaller collets or small ER collets.
DC tool holders
These are used on the 5-axis because they are small diameter holders and can be quite long, which is useful to create clearance between the holder and part or vice.
Unfortunately the smaller diameters and larger length makes them less rigid and they will vibrate more. For tips on preventing vibration go to the machinist essentials learn page.
Heat shrink tool holders
Heat shrink holders have similar or slightly better runout and grip strength to PG collets. These holders can only be used with exact size tools and are more difficult and dangerous to setup.

