Fractal FM3

The engineers literally acquire the actual amps, open them up, and recreate the exact circuitry digitally with the Fractal software. On top of that, you have top shelf and professional quality effects and pedal copies to choose from. Quite literally endless options. All of this can be yours in the more-affordable FM3 (or FM9) option, you don't need to ball out on the AxeFXIII.

They are very practical and sound great. I think they are ideal for most hobbyists who want to try a wide variety of sounds and effects and get great tone at lower volumes at home. I find it much easier to get a good tone out of my Helix Floor or Fractal FM3 into studio monitors at low volume than from my all tube rigs. These are top tier modelers and while for example the Boss Katana is a popular amp, it doesn't hold a candle to these higher end units.

There is also the Yamaha THR10 II or THR30 II, either of which are a good choice in my book and super portable. You could also fully dive into modeling and buy something like the Line 6 HX Stomp, Line 6 Helix LT, or Fractal FM3. You can use headphones with those but if you want to listen to them through speakers you'd need studio monitors (Adam Audio T Series or JBL 3 Series MkII are good recommendations). You could also get a powered FRFR cabinet like the Line 6 Powercab, HeadRush FRFR, or Mission Engineering Gemini 2.

I also have a Fractal FM3 and never have had to crank the gain with them, output seems to be about in line with my other guitars. They are definitely sensitive to pickup height changes. Another problem that could be happening is that you have a faulty pot.

My recommendation would be to go with a Fractal FM3. I can go into super specific details but the long story short is that it sounds incredible, has tons of customization and options, gets consistent updates making it even better, and is well priced for what you get. No matter what you are going to want a nice pair of headphones too.

I hate to even say this because it’s so far out of your budget, but I ended up buying a Fractal FM3, and it sounds amazing with headphones. It has really killed my desire to collect pedals and amps, and it’s portable enough to lug around the house. I realize it’s about 3x your budget, but if you know anyone who has one, try to have a go. I can semi-rationalize it because I stopped coveting and purchasing pedals and amps.

Since getting my FM3 I've sold all my amps and never looked back. It nails those valve tone at any volume and the versatility is insane.

I have the FM3 and it sounds amazing. The interface of the Helix will likely be much easier to use, but IMO, the Fractal is a game changer.

I just sold my amp and bought the Fractal FM3. It's insanely powerful for such a small unit. There is definitely a learning curve with it, but it has a huge collection of amps and cabs and just behind the Axe FXIII in terms of updates. I play in a cover band and don't really record anything, but I have seriously started thinking about buying an interface and DAW to start recording some ideas that just keep pouring out of me.

Playing “mic’d tones” through studio monitors is a different sound / feeling than a live guitar cab in the room with you, but it will be a big upgrade from that 5w entry level amp anyway. Personally this is what I do for a living and I replaced all my analog gear with a Fractal Axe-FX III, but the Fractal FM3 could probably get it done for me also.