Heard a great question recently... Here's the answer.
There's only one quick way to answer the question: there's no simple solution.
Hand position is just another one of those squat components which has to be figured out. So many different ways to hold the bar exist, and the key to your perfect squat form lies in finding the position which works the best way for you.
Sometimes a narrow grip on the barbell works, but if you watch the video above, you'll notice that a narrow grip can also be cultivated with some simple shoulder mobility work (for a shoulder mobility tutorial click here). If you find it hard to do either of these, you can even hold on to the plates on either end of the bar! Eddie Hall does this, and in a narrow squat rack, I'll do it too. Both illustrations of this are in the video above.
To follow up on my last squat tutorial I made sure to put in a side-by-side comparison of my brother and I squatting. We're blood relatives, but our anatomy is still different enough to leave us both squatting very differently from one another. Check it out!
I want to show you that there's no real "perfect squat form," or indeed any instance of perfect form in any big lift. The idea of lifting healthily and properly lies in finding what works for you and making sure it helps you fully explore the relevant ranges of motion and joint actions involved.
Go squat!