In this post I just write down some advantages and disadvantages of the group types and let you choose what kind fits better for your needs.
SharePoint Group | Active Directory Group |
Members of this group can be added/removed from within SharePoint. The permission to add or remove users from the group can be delegated to SharePoint users. | Members of this group can be managed within Active Directory. Only Active Directory administrators have the permission to modify group memberships. |
Members of this group can be visible to users. | Members of this group are not visible to users. |
Cannot contain another SharePoint group as member. | Can contain another Active Directory Group. |
Must have a unique name on site collection level. The name is the unique identifier of the group | Can cause serious problems in lage scale scenarios: A user might only be a member of 1024 Active Directory groups (recoursively). If this number is reached the user is no longer able to log on to Windows. |
Can contain SharePoint users that do not exist in the Active Directory. |
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