The Lumia 535 has Bluetooth capability for connecting with Bluetooth accessories such as headsets. It also has the standard 3.5mm headphone jack for connecting with headphones that have an audio output.
So the Lumia 535 is just as compatible as every other smartphone out there. Your friends are silly.
No, that's not true any earphones are compatible with the Lumia 535. My friend had Lumia 535 and he used any type of earphones for listening music. Recently I have purchased the new stylish earphone from the Sound Magic and gifted him on his birthday. He used that earphone for listening music in the Lumia. So buy any earphone for the Lumia.