If you mean coolant you brush on or squirt from a bottle you can use any amount of any kind you can conveniently clean up. WD40 is a great coolant for aluminum but it's no good as a general purpose coolant or lubricant.
If you mean flood coolant and you have a small home shop I don't reccomend it. For one thing flood coolant always splatters unless you have a full containment chip shield. For another in a low production home shop you don't get much benifit over locally applied coolant. See, the main beneffit of flood coolant is when the machine and tools are pushed for maximum production and the heat of working metal causes problems with dimension control and shortens the life of the cutting tools. The gush of coolant carries away heat from the point of operation.
The best all-around coolant doesn't exist but a few modern water base coolant come close. They are either expensive and/or messy. Even the best affordable water based coolants grow mysterious Area 51 grade organisms if left unattended in the sump for more than a month.
If you absolutely positively have to have flood coolant I would suggest oil as you already concluded. What kind of pil depends on the materials you work. I suggest an unsulpherized mineral lard cutting oil. It works very well, moderately messy. non-toxic even when smoking hot, low in cost, works well as a lubricant, prevents rust, etc. It's not much different from a medium hydraulic oil in appearance and viscosity. All trhe industrial supply houses have versions under differet labels. The actual difference between brads is small but of course there is hype. I suggest MobilMet 404 but Houghten, Rustlick, Shell, and a dozen others sell similar stuff for about $15 a gallon.
You might also consider peanut oil. One of the best kept secrets is vegetable and animal oils and fats make good metalworking fluids. I used bacon grease for years cutting threads in gummy steels and aluminum. All vegetable oils pose a spontaneous combustion hazard and that hazard depends on the source of the oil and how it was processed. Peanut oil and corn oil from the bulk containers is a food whereas boiled linseed oil is processed as a drying oil for paint and coatings. One poses a mild hazard and the other dire if absorbed in rags and left loosely fluffed in an open container.
All things considered if you didn't wish to purchase a proprietory mineral lard cutting oil I suggest you subsstitute a medium hydraulic oil. There's little difference in percormance as a cutting fluid between Mobil DTE 24 and MobilMet 404 and the price is about the same. Hydraulic oil is available at any farm store, heavy equipment or hydraulics supply house, or petroleum bulk plant (fetch your own container) found even in small communities. Mineral lard oil has to come from an industrial supply house usually at the other end of a shipping route..