I'm with Pontiac; best bang for the buck on a smaller lathe will be HSS but you have to learn to grind them. I also agree that next in line would be brazed carbide but you have to be able to grind those, too, or at least have diamond stones to sharpen them.
Another option is the
AR Warner sets that use HSS inserts. Big bucks but the inserts can be easily sharpened and will last for a very long time so they're cheaper than carbide inserts and will also work better on a small lathe vs carbide.
Last is carbide insert tooling. You can buy really cheap tool sets that actually work okayish on a small lathe. One of the best deals I've seen is
this one from PM. These are known as SCLCR (RH) and SCLCL (LH) turning tools and a RH SCLCR boring tool. The CCMT inserts are for ferrous stuff and the CCMT inserts work with aluminum (can also work with other materials). These tools are the most commonly used insert tools in the hobby field, mostly because they're cheap and they work. The turning tools can face and turn without having to move the tool if you position the shank perpendicular to the work.
You can hold 1/2" tools but you may not be able to get them on center; I would stick with 3/8" if I were you.
There is no doubt in my mind that HSS will work the best for you but you probably are not ready or able to grind them yet. If this is so, go for the set from AR Warner or PM and learn to use your lathe.
ARW sells a HSS threading tool, and PM also sells a
threading tool set if you're interested but it's 1/2".