Try Hatch by Wilcom. I tried a free 30 day trial program.
https://www.wilcom.com/Hatch.aspx I think it's only $149 but I'm not sure you can digitize with it. It does have other modules that can be added to upgrade to the full program. My Editor is a free program from Wings Ltd. You can do limited editing with it. I've heard some people use it to digitize but I haven't tried to.
http://www.wingsxp.com/index.php/my_editor/ A lot of people use Embrilliance but I haven't tried it. Good luck.