I'm looking for non-expiring demo account and fast executions and of course good spreads - with oanda demo I was waiting from 30-60 seconds for orders to be cancelled. I live in Australia so would prefer ozzie broker but there does not seem to be many here. I am currently with GoMarkets in AU and they started out really good but lately their demo a/c server is very slow with several little freezes. I don't know what their live account is like but I want to try a few more to compare.

Dukascopy is in my opinion the best broker but I keep Oanda as a good and honest broker (I've got an account with them), for non US citizen some people would avoid cause of the leverage they offer but for me it is a broker I don't fear to run bigger accounts. If you google a bit you will see they have a good average of customer making profit out of forex. They are not that kinds of broker who make all those bonus and rebates, the more bonus and rebates the less I trust because nothing is completly free in this world.
About MBTrading I never had an account with them but till now only listen good things from this broker.

It's not my first choice but for Australian broker I would say Pepperstone is not bad at the moment and you can ask them for a non-expiring demo.

I like Oanda too. I've been with them since 2000. But now they incorporated dynamics spreads. This make it really difficult for manual traders. EAs are better to use because you can set a filter to ignore ticks when the spread is too wide.

Is hedging allowed on this broker?

AndyQuant - you can't hedge on the same account with OANDA. But you can hedge in different accounts e.g. buy in sub-account A, sell in sub-account B