I've been using mine for home made tools but they can be used for unhandeled gouges etc. The collets are currently only about £1.95 each for ER20 or ER25 on eBay.
Most of my home made tools have 12mm shanks so I've been boring out the spindle of the chuck to accommodate them as the through hole is normally only 10mm. The steel is quite tough though so I've been using an extended glass drill to open up the hole.