A hole saw is the best with a vari speed electricx or battery operated drill. Of course the hole saw needs to be a diamond coated variety.
lacking a hole saw, you can use a dremel tool or air die grinder with a diamond tipped burr to cut the hole out. Odds are you will have to order the diamond tip hole saw online or from a local company as it would be rare for them to have that in stock since there is so many types and sizes, but the diamond coated burr should be available in home depot or lowes or even wally worlds tool department. The burrs run about $5 each and the hole saws can be had formn a few bucks to big bucks. Don't worry about ht echeap ones they work just fine and will drill quite a few holes in a tank. May not hold up in a commercial environment but for hobby use as such they are perfectly fine. That big
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site has them as well....the guy lives in hong kong that sells them and he is very reliable so don;t be afraid to order from the dude just cause he lives in hong kong. I got mine in a shorter time frame from hong kong than stuff that only had to go a few states away......