Micro Focus recommends that you leverage the security features of eDirectory and Active Directory whenever possible.
Both of these directory services have extensive and proven experience with authorization and authentication services. They also provide security features, such as intruder detection, forced complex passwords, password expiration, password history, and so on.
Local user accounts that you create through Filr in the SQL database are certainly not insecure, but neither are they protected by the security features mentioned above.